Marketing Opportunities for and High Quality Production from Cassava and Sweetpotato in Uganda Resource and Crop Management Research Monograph No. 29

Marketing Opportunities for Starch and High Quality Flour Production from Cassava and Sweetpotato in Uganda

R.S.B. Ferris, A. Muganga, R. Matovu, S. Kolijn, V. Hagenimaua, and E. Karuri

Intcrnatioual Institute of Tropical Agriculture Preface

The Resource and Crop Management Research Monograph series is designed for the wide dissemination of results of research about the resource and crop management problems of smallholder fanners in sub-Saharan Africa, including socioeconomic and policy-related issues. The range of subject matter is intended to contribute to existing knowledge on improved agricultural principles and policies and the effect they have on the sustainability of small-scale food production systems. These monographs summarize results of studies by IITA researchers and their collaborators in the llTA Resource and Crop Management Division (RCMD). They are generally more substantial in content than journal articles. The monographs are aimed at scientists and researchers within the national agricul- tural research systems of Africa, the international research community, policymakers, donors, and international development agencies. Prepublication review and editing of each manuscript are conducted within RCMD. Individuals and institutions in Africa may receive single copies free of charge by writing to: The Director Resource and Crop Management Division International Institute of Tropical Agriculture PMB 5320 lbadan Nigeria

The authors R.S.B. Ferris, Enterprise Development Specialist, IITA-Foodnet/lJganda A. Muganga, Market Information Specialist, IITA-Foodnet'Uganda R. Matovu, Research Assistant, IITA-Eastem and Southem Africa Regional Center, Uganda S. Kolijn, Enterprise Develppment Special~st,FAGUganda National Postharvest Program V Hasenimana, Postharvest Specialist, International Potato Center7Kenya E. Karuri, Lecturer in Food Science, University of Nairobi, Kenya

0 2002 International Institute of Tropical Agriculture Contents

Preface 11 Abbrevi vii Executive summary viii

1. Uganda: geography and economy ...... Geography ...... Economy ...... The importance of cassava and sweetpotato ...... Production trends for cassava and sweetpotato ...... Future trends in root crop production in sub-Saharan Africa ...... Price trends for cassava and sweetpotato Farmers' ability to adjust to changes in the market ...... Options for starch within the marketing mix of cassava processors ......

11. Starch properties, methods of production, and products ......

Starch production and product Sources of starch Starch products and uses

111. Cassava starch: markets, qualities, applications, and methods of extraction .....

Genetic diversity within cassava starch Methods of starch extraction from cass Finishing and packaging

IV. in Uganda ...... Lira starch factory V Starch market survey Methodology Use of starch and starch products by major industrial sectors in Uganda Sources of starch procurement ...... Indigenous starch production ...... Starch prices ...... The Kenya starch market ...... Fresh competition from South African starch manufacture ...... Starch replacement Flour prices relativ Differences in starch consumption in this survey compared with the IS1 values Starch quality as re Market potential fo

VI. Market opportunities for cassava and sweetpotato products ...... Cassava ...... S1veetpotato ...... Market options for processed root crop products Starch i~nportation...... Medium-scale industrial starch production ...... Small-scale starch processing

VII. Strategies and technologies for small-scale market intervention ...... Fro111 traditional to high quality flour processing ...... llnproved methods for processing cassava and sneetpotato flour ...... Stages in processing f~igl~quality flour frorn cassa\,a ...... Manual processin Evaluating small- Cost-ber~etil a11al)sis of tile processing technologies ...... Smsitibity analysis of cost-benelit The use of chipping and medium c

VIII. Conclusions

I.ongcr term options for iiiarket i~itcrventiori Options ibr lnarket iritcrvention ...... Recom~nc~~dationsand areas for Tuture rcsearcli ...... Acknowledgements ...... References ...... Annex I . Glossary of commonly used starch-related terms ...... 2 . Questionnaire form used in market survey ...... 3 . Factories/institutions visited that do not use starch or subproducts ...... 4 . Cost-benefit analysis ...... 5 . Sens~t~v~tyanalysis ......

Tables Export by value of principle products. US$000s 1990-1997 ...... Production trends for cassava and other root and tuber crops up to 2020 (000. 000 t Estimated world starch production (1992) (000 t) ...... Starch source distribution in global market (excluding China) ...... Uses of starch and starch products in the food sector ...... Uses of starch and starch products in the nonfood sector ...... Major classifications of starch types and products ...... Summary of methods of starch extraction by scale of operation ...... Factories and institutions that use starch in Uganda ...... Factories and institutions that use starch-derived products in Uganda ...... Market prices and suppliers of starch and derived products ...... Factories replacing starch with cassava or flour ...... Starch and flour usage by major industrial sectors ...... Retail prices of starch and various in Uganda, 1998, fourth quarter ..... Confectionery manufacturers response to cassava flour ...... Comparison of the four identified market options ...... Commercial medium- to large-scale versus small-scale starch production in Uganda Relation between met The effect of crop age on root cyanogen levels at Serere station (mg CNIkg DM)

Figures 1. National production of cassava and sweetpotato ...... 2 . Trends of nominal and deflated fresh cassava and sweetpotato prices in Kampala district. December 1988 to December 1998 ...... 3 . Site of the L~rastarch factory and areas of industrial activity ...... Heap fermentatio Soaking cassava, Bitter cassava is pe Grated mash is dewatered using a press Dewatered mash or chips are sun dried. The dried product is then milled ...... Sweet cassava is chipped, using a manual or power chipper ...... Power chipper ...... Gari coarse granule rasping head ...... Starch fme wire rasping head ......

Annexes 1. Glossary of commonly used starch-related terms ...... 2. Questionnaire for the market survey ...... 3. Factoriesllnstitutions visited that do not use starch or any subproducts in the manufacture of their products ...... 4. Cost-benefit analysis of small-scale processing ...... 5. Sensitivity analysis of flour processing ...... Abbreviations and acronyms acre a measure of land area, equivalent to 0.4 ha ACDI Agricultural Cooperative for Development International ACIAR Australian Centre for International Agricultural Research CIAT Centro International de Agricultura Tropical c.i.f. commercial, insured freight CIP International Potato Centre CIRAD Centre de coopkration internationale en recherche agronomique pour le dkveloppement. CMD cassava mosaic disease CNP cassava cyanogenic potential (a measure of the ability of a cassava plant to endogenously'build up toxin precursors which, on contact, produce the human toxin hydrogen cyanide) CPC Corn Products Corporation DFID Department for International Development (UK) DICK kroner (Danish currency) FA0 Food and Agriculture Organization of the United Nations f.0.b. free on board GTZ Gesellschaft fdr Technische Zusammenarbeit HFS high fructose symp IDRC International Development Research Centre IDU Industrial Development Unit IFPRI International Food Policy Research Institute IITA International Institute of Tropical Agriculture IS1 International Starch Institute MS NARO National Agricultural Research Organization RSA Republic of South Africa UMS unmodified starch UNDO United Nations Industrial Development Oganization UNPP Uganda National Postharvest Program USAID United States Agency for International Development Usb Ugandan shillings

N.B. TIveughout this text, maize and corn starch are used interchangeably. Executive summary

Due to increasing competition resulting from globalization, Africa is losing the battle to supply agricultural products at competitive world market prices. Lack of efficiency and the inability to adapt to changing world markets mean that African fanners find it increasingly difficult to sell their products into traditional export markets and to service higher value markets. Moreover, this lack of market competitiveness makes African countries the final marketplace for surplus or low quality products from other exporting countries. The challenge for agricultural development researchers is, therefore, to enable African fanners to produce a wider range of agricultural products at prices and quality standards that are competitive with the world market. Developing the small-scale processing sector is one approach to transforming low value crops into value-added products. This strategy also offers the opportunity to access new and higher value market opportunities. Successful crop processing industries in Asia, Latin America, and West Africa have shown that small-scale fanners can respond to new market opportunities and will invest in processing if markets support stable incomes. Examples of the dramatic effects that processing can have on local production and economic growth have been demonstrated in Nigeria with the rapid growth in gori production, in Thailand with the growth of the cassava-based animal feed industry, and in other countries in Asia with an emerging native starch and starch-based product market. The aim of this project was to evaluate market opportunities in Uganda for transforming cassava and sweetpotato into higher value processed products. In Uganda, cassava and sweetpotato are considered famine reserve crops and processing has not been developed there as in other tropical countries. Much of the root and tuber harvest is consumed in the primary form after boiling or roasting. Processing techniques are limited to traditional methods. These generally produce low quality products that are constrained to low prices within the local marketing system. Although the small-scale processing sector has not been developed, during the 1980s Uganda had an industrial plant to process cassava into starch. Unfortunately, this capacity was lost during the period of civil unrest and since that time Uganda has imported all its starch needs. This project, therefore, aimed to determine (I) current market demand for starch, (2) the merits of developing a small-scale processing sector compared with reestablishing factory-scale processing capacity, and (3) the technical and economic feasibility of small-scale starch processing technologies which would be appropriate in the Ugandan fanning and marketing systems. Results from the market survey indicated an approximate domestic yearly consumption in Uganda of 1,00&1,500 t of starch, 1,W1,500 t of liquid , and 40&500 t of dextrins. These markets have a combined yearly value of approximately $2-3 million. The major consumers of starch are in the pharmaceutical, food, and nonfood sectors. The nonfood industries include textiles, wood processing, and cardboard makinp. The level of starch consumption revealed in this survey was lower than suggested in previous reports. The difference may be because most nonfood processors were using cassava flour as a low-cost replacement for starch. .ssaaold aq JO Li![!qeu!e]sns ma] la4uol aqi u! loi3ej iuq~odm!ue are q3ms molj spuaiem alsem jo saps aq '[puts are su!%rem sv .moU oiu~paiuodroau! aq plnoa %u!ssamld q3reis moij aisem se 'iuamd!nba re[?.u!s sLoldma q3!qm %u!ssaaoid inow ap!s%uop pai3npuo3 uaqm a[qeiyold aiom sem %u!ssa301d qmis leqi punoj sa!p;ils b~eluamalddns .as!l&aiua-01% s!q jo L~![!qeu!eisns aqi aienlena 01 pue slauired ~ol3as-aien!ld qi!m syu!~qsllqelsa 01 paqnba~s! 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This study was conducted to identify the domestic demand for starch in Uganda and to determine economic methods for supplying this market. The study compared four options for the supply of processed root crop products, but focused on the prospects for developing small-scale, rural agro-processing enterprises in Uganda to supply value- added products to urban consumer markets and industrial processors. The selected crops in this study were cassava and sweetpotato, which are major food security crops in Uganda, and the target markets were for starch and high quality flour. The long-term strategy of this type of research is to create and support agro-enterprise ventures, which contribute towards the growth of a more vibrant rural economy, providing sustainable employment and increased income for rural communities in Africa. Unlike West Africa, Latin America, and Asia, where root crops are processed into a range of higher value products, in Uganda, root crops are considered a low value famine reserve and the harvest is used almost entirely for low value food products. Virtually all sweetpotato and approximately half of the cassava harvest are consumed at the village, after boiling or roasting. Cassava is processed into traditional products such as chips, flour, , beer, and gin; sweetpotato is processed to a lesser degree into dried slices in some northern areas of the country. For the purposes of this study, traditionally processed "chips" refers to a mix of cassava pieces and rough flour, made by pounding sun dried roots. Cassava flour is consumed after being mixed with water to produce a dough or mash; the flour is used either alone or mixed with millet flour to produce a more nutritious meal. Although market opportunities exist for cassava products, farmers are generally reluctant to grow more than they can easily sell or eat and the quality of processed products is generally low. Poor product qualit) and lack of processing equipment are significant barriers to increased sales of root and tuber crops, and these factors prevent farmers from gaining prenliu~nprices for their products and reaching new markets. This study, therefore, investigated the market opportunities for higher quality, value- added root crop products to supply esistiny and new markets in the food and industrial sectors in Uzanda. The project also evaluated improved small-scale processing technologies that \vould enable fartilers to process improved quality products at increased volume and efficiency and obtain access to higher value markets. Starch was selected as the target coni~nodity,not only becausu it is a multiuse product with a rapidly expanding global market. but also because Uganda has a history of starch production. Until the 1980s, Uganda had an industrial capacity for starch processing that supplied the textile industry and there is much interest from the Covernnient of Uganda in rehabilitating industrial starch processing. llowcver, much has changed since the first years of independence. Uganda underwent a protracted period of civil unrest during the 1980s that badly disrupted the traditional industries, including cotton, and this led to the loss of associated markets in textiles and starch processing. The civil unrest was also responsible for loss and severe damage to the manufacturing skills base and infrastructure. This market survey, therefore, aimed to establish the size of the current starch market, major users, sources of supply, and market prices in Uganda. Information was also required on the types and quality of starch being used by the industrial sectors and the demand for starch- derived products such as glucose and glues. Although the survey focused on starch, it was recognized that there were a number of linkages in the production and marketing of starch and flours. Therefore, to provide more clarity in the market analysis and strategies for market intervention, both starch and flours were investigated within the market survey to ascertain the opportunities for supplying the local market with a range of products to supplement or replace imported goods. Having established the demand for processed root crop products, the next problem is how to supply this market. In the 1970s and early 1980s, Uganda had an industrial capacity for starch processing which was built with Government funds. Since the end of the civil war when the main factory at Lira was destroyed, the Government has been unable to rehabilitate the project, and the private sector has been unwilling to invest in this industry despite generous Government incentives. An alternative approach to industrial starch processing is to initiate small-scale starch processing. This approach has been successful in Latin America and Asia, where small-scale entrepreneurs operate both independently and in conjunction with medium-scale processors. Developing the small-scale sector offers several advantages compared with industrial development, including lower investment costs, greater locational options, lower production costs, and the use of rura! resources, skills, and manpower. In Uganda, 85% of the population reside in the rural areas; employment opportunities are few and rural development slow. Although the Government has been successful in redeveloping some of the macroutilities such as roads, electricity, and civil security, development of the rural economy has been limited. The introduction of small-scale processing technologies offers the prospects of farmers moving beyond subsistence and stimulating demand for their crops. Similar strategies have been successful in other countries, such as Nigeria, Brazil, and China. The challenge is to adapt simple but robust technologies within the traditional farming systems of a country such as Uganda, and link the production of a primary commodity with new and higher value markets.

Objectives of the study 1. Review trends in the production of cassava and sweetpotato in Uganda. 2. Provide an overview of world production and major uses of starch. 3. Conduct a subsector market survey to determine the size of the starch market in Uganda, the major users, and the processes that require starch. 4. Evaluate technical options to supply identified market opportunities. 5. Identify and transfer small-scale starch and flour processing technologies and evaluate their technical.and economic feasibility in Uganda. 6. Compare alternative strategies for market intervention to supply market needs 7. Identify priorities for future areas of research.

Project strategy The strategy in this project was to use a combination of market analysis and processing data to determine the most viable means of supplying the domestic starch market in Uganda. The project used a combination of primary and secondary data to review and analyze trends in both the production and prices of root crops and root crop products in Uganda. Secondary information was used to review the starch industry in Uganda and overseas. Market surveys were conducted to determine the current demand for starch in Uganda by gathering information on uses, costs, import levels, and sources of starch in terms of crop base and production site. Parallel to the market studies, processing equipment was fabricated and tested both on-station and on-farm to evaluate the feasibility of transforniing cassava into starch and high quality flour. A starch extraction facility was developed at IITA-Uganda with the assistance of the Vietnamese national postharvest program. The starch facility was built to gather information on the design, costs, and suitability of small-scale starch extraction for village-level processing in Uganda. The starch processiny equipment was given a preliminary test with a farmers' association to assess the financial viability of the system. Similar studies were made to develop technologies for hiyh quality flour. Tcst samples of both starch and high quality flour were delivered to industrial processors with a view to establishing contracts for supply. Uganda: geography and economy

Geography The Republic of Uganda is located in East Africa. It is a landlocked country having borders with Kenya, Tanzania, Rwanda, the Democratic Republic of Congo, and the Sudan. The country has an area of 241,039 km2,18% of which are open water and swamps and 12% forest and game parks. In the central and western regions of the country, there is a bimodal rainfall pattern, with the heavier rains from March until May and lighter rains from September to December. The rainfall pattern shifts towards a unimodal rainfall pattern in the northern districts. Average rainfall is from 1,000 to 1,500 mdyear and the average temperature ranges from 15 OC by night to 28 "C by day.

Population. Based on information from the latest census (1991), the current Ugandan population is estimated to be 21 million people. The annual growth rate is approximately 2.5-2.7% and the population density is 85-90 personslkm2. According to these figures, the population in Uganda will approach 30 million people by the year 2020. The rate of urbanization is increasing, with over 16% of the population (3.5 million) living in urban areas. Records show 4.2% of the population were living in the largest 150 urban centers in 1959 and 11.3% by 1991. For many people, the reason for moving to the cities was not to seek employment but to escape areas of civil unrest.

Economy The economy in Uganda is predominantly agrarian, with nearly 90% of the population dependent on farming. Most farmers are small scale and grow crops on plots of 5-10 acres (24ha) to support their families. The country is self-sufficient in food, although there are large supplies of food aid for areas of the country that suffer from rebel incursions. During the period after independence, 1962-1970, Uganda had a flourishing economy with a gross domestic product (GDP) of 5% per annum. Between 1979 and 1985, Uganda faced a period of civil and military unrest resulting in the destruction of the economic and social infrastructure. Since 1986, the National Resistance Movement Government has introduced and implemented a recovery plan which is steering the country towards economic prosperity once again. The new policies have aimed to minimize financial mismanagement, reduce the size of the public sector, and liberalize the economy. As a result of these reforms, economic growth has averaged 6% since 1986 and reached 10% in 1994. Although the rate of annual growth slowed slightly from 1995 to 1997, there is a steady positive trend, and this growth is supported by industrial growth which is increasing at a rate of over 10% per year. An important factor in the regrowth of Uganda was the decision in 1983 to allow the expelled Asians to return and reclaim their property. Although many returned only to sell their property, some 7,000 to 8,000 Asians have remained, and this group consists largely of industrialists, managers, and engineers. Traditional export markets. Traditional export crops include coffee, tea, cotton, and tobacco (Table 1). 'The coffee boom which started in 1994 has shown a dramatic and sustained growth in exports from 2 million hags in 1993, with export earnings of $107 million, to over 3 million bags in 1996 with earnings of nearly $400 million. As part of the privatization plan, the Commonwealth Development Corporation has rehabilitated six tea plantations, and export earnings in 1997 were more than $5.5 million. Cotton is an area of interest for this study as it is linked with the textile and starch markets. The cotton industry vimally collapsed during the period of civil unrest, from 470,000 bales in 1970 to 31,900 bales in 1990. Following investment from the World Bank, Lonhro, and other Asian and South African investors, it is thought that production will increase up to 160,000 bales with an export value of $40 million in 1998-2000. Unfortunately, the expected boom in cotton is yet to be realized and many of the problems have been caused by extremely poor weather associated with the El Nifio of 199718 and the financial mismanagement in the procurement chain which led to widespread frustration among producers.

Nontraditional export markets. The return of stability and capital has also led to strong growth in the nontrad~t~onalexport industries such as producing flowers, maize, beans, and spices. The export of fish and fish products has been an area of particularly high growth with the development of a number of fish factories on the shores of Lake Victoria. Unfortunately, the rise in income expectation has led to some individuals using pesticides and herbicides to increase their catch size and a spate of fish poisonings led to the European Union placing a temporary ban on fish importation l?om Uganda (FEWS 1999).

The importance of cassava and sweetpotato In Uganda, cassava and sweetpotato are essential crops for food security and household income. Although both crops are exotic and were introduced only in the past 100-150 years, they have become integral to the cropping mix. In terms of national production, cassava now ranks second, after highland banana, with Table 1. Export by value of principal products, US$000s, 1990-1997.

Commodity 1990 1991 1992 1993 1994 1995 1996 1997

Traditional export crops Coffee 140,384 117,641 95,372 106,775 343,289 384,122 396,206 309,740 Cotton 5,795 11,731 8,218 5,505 3,485 3,129 14,961 29,197 Tea 3,566 6,780 7,721 11,141 11,804 8,698 17,059 33,577 Tobacco 2,941 4,533 4,204 7,011 8,269 7,397 4,626 12,150 Nontraditional exports Maize 3,318 4,188 3,894 23,319 28,666 19,302 17,885 19,407 Beans and olhcr legumes 4,150 4,274 2,782 12,580 12,900 10,847 15,950 10,502 Fish and fish products 1,386 5,313 6,498 8,943 10,403 17,541 45,030 29,980 Cattle hides 4,072 3,363 3,375 5,228 10,549 8,886 7,666 7,729 Sesame 5,234 10,517 6,478 2,776 1,548 5,282 9,303 1,520 Soybean 468 2.056 756 880 2.913 240 SO& 1,302 1,739 2,630 21241 1,977 Electric current 1,218 923 1,537 728 2,245 2,414 4,164 11,688 Cocoa beans 504 374 281 714 586 442 4.105 887 Goat and sheep skins 2,064 968 664 619 344 38 I Hoes and hand tools 109 445 462 381 1,018 2,160 813 Pepper 197 210 350 444 88 73 Vanilla 176 328 674 7 809 Live animals 106 285 150 33 113 Fruits 265 238 267 34 Groundnut 121 34 251 365 393 15 Banana 162 208 173 658 910 Roses 158 531 34 2.809 G~nger 121 105 132 20 27 61 12 Gold 9,648 49 89 244 23,197 64,090 80,590 Other products (I) 2811 2320 4,675 10,122 19,034 56,124 95,156 56,690 Total Traditional expotl crops 152,686 140,685 115,515 130,432 366,847 403,346 432,852 384,664 Nontraditional exports 24,972 43,578 31,252 70,799 93,112 150,592 274,141 222,805 All products 177,658 184,263 146,767 201,231 459,959 553,938 706,993 607,469

Source: Statistics Department, Ministry of Finance, Planning, and Economic Development. Entebbe. a production of approximately 2.5 million t and sweetpotato fourth, with a production of approximately 2 million t. Farmers have adopted cassava and sweetpotato in preference to indigenous crops because of their ease of propagation and ability to produce stable yields in areas of marginal soil fertility, under variable rainfall, and low input management techniques. Cassava and sweetpotato are also relatively tolerant to pests and diseases and both crops have been successful in the drier areas of Uganda which do not support banana production.

Production trends for cassava and sweetpotato

Cassava production. In addition to a reliable agronomic performance, cassava is also popular as it is efficient to produce in terms of labor costs and roots can he harvested'or stored in the ground over a period from 6 months to 3 years. Because of this highly flexible harvest date, farmers can sell roots when they need cash and for many farmers cassava is considered a "landbank." Cassava can also be processed into a number of traditional products, sqch as chips, flour, pancakes, beer, and gin' and therefore is less prone to the famine-glut marketing cycles associated with more seasonal crops, such as maize and sorghum. In the past 30 years, cassava production in Uganda has risen from 2 million t in the 1970s to over 3.5 million t in the early 1990s. Despite the suitability of cassava for the local farming system, production in Uganda has recently suffered from a virulent form of cassava mosaic disease (CMD). This has caused widespread crop losses, particularly in the period from 1988 to 1992. As a result of this disease epidemic, cassava production has fallen significantly and in some areas of Uganda losses of up to 80% have been reported (Otim-Nape 1997a.b). Although the severity of the CMD epidemic in Uganda is not fully reflected in the Ministry of Agriculture production data (Fig. 2), the cassava production data indicate a decline from 3.5 million t in 1989 to a level of 2.25 million t in 1996. To overcome the CMD epidemic, the national cassava program, in collaboration with several development agencies, including the Gatsby Charitable Foundation, the Department for International Development, UK (DFID), and the United States Agency for International Development (USAID), has initiated major multiplication projects to resupply Ugandan farmers with resistant cassava planting material (Ferris et al. 1997; Opio Odongo and 0th-Nape 1999). The resistant varieties, which were developed by NAKO and IITA, have been multiplied and distributed throughout the country and it is expected that cassava production will return and exceed the level of 3.5-4.0 million t within the next 5 years. One of the reasons for the rapid recovery in yield is that farmers are being resupplied with new, improved varieties. In a monocrop, the older varieties when not affected by CMD produce from 6 to 8 t/ha in farmers' fields, whereas new varieties produce from 10 to 15 t/ha. The rapid increase in yield in the primary multiplication areas is already having a strong downward effect on cassava prices at the markets and it is anticipated that prices for cassava and cassava products will stabilize at levels that are near to or below the 10-year average. Sweetpotato production. Sweetpotato is favored due to its ability to grow two crops per year in the bimodal rainfall pattern. As with cassava, growing sweetpotato is labor efficient and the crop requires little maintenance once the canopy has become established. After harvest, the tubers have a shelf life of 2-3 weeks and this provides sufficient time for transport over relatively large distances, even within the fragmented bulking and marketing systems in Uganda. Production has steadily increased to nearly 2.5 million t since 1986 (Fig. I). This increase has, to a large extent, filled the food supply gap caused by the CMD epidemic and loss of cassava production. Cassava

R

Tine h years Figure 1. National production of cassava and sweetpotato (million t). Source: Ministry of Agriculture, Uganda.

Future trends in root crop production in sub-Saharan Africa It is predicted that root crop production will increase by approximately 2.75-3% per annum in sub-Saharan Africa over the next 20 yean (Table 2, Scott et al. 2000). Given this expected rise in production, which is based on population and economic growth factors, the food security role of these crops will become increasingly important. However, a key question is whether cassava and sweetpotato will remain subsistence crops in countries such as Uganda, or whether such crops can play a more important role in economic development. Prospects for a transition from a food store to a leading economic commodity are unlikely, unless new market opportunities can he identified and farmers can supply surplus production into expanding andlor higher value markets, as has been achieved in West Africa, Latin America, and Asia.

Table 2. Production trends for cassava and other root and tuber crops up to 2020 (000,000 t). Additional outpuW2020 Major region 1993 Baseline High growth Sub-Saharan Africa 88.06 80.48 95.98 SE Asia 42.35 5.6 5.95 Latin American countries 30.5 1 12.42 19.98 Source: Scott et al. 2000. NB. Cassava, roughly 95%, 5% other roots and tubers. Price trends for cassava and sweetpotato The price information shows a series of peaks for cassava and sweetpotato over the past 10 years (Fig. 2). These price fluctuations were the result of poor hawests caused by adverse weather. The peak in 199213 was caused by a regional drought, the peak in 1994 by the Rwandan crisis, although (interestingly) only sweetpotato prices were affected. This was probably the result of a strong demand for food that could he shipped and stored. As fresh cassava cannot be stored for more than 2-3 days, it was not purchased. In 199718, the dramatic price rises were caused by a combination of drought in 199617, the CMD effect on cassava production, and the El Niiio event which caused widespread flooding across East Africa in 1998. When the price data are compared with the 10-year average, it is apparent that the market recovered relatively quickly after peak prices, i.e., within a season, as either farmers increased production in response to favorable prices or production simply recovered owing to improved weather. The improved supply caused a decline in prices and stabilization. During the 199819 season, farmers experienced a 10-year high in prices rapidly followed by a 10-year low. It is most unlikely that price changes were a reflection of farmers responding to market opportunities. The data show that the price simply stabilized at the 10-year price and this supports the view that farmers grow only what they know can be easily consumed or sold in the local market. The variations in price are, therefore, a function of adverse weather causing crop losses rather than fanners planning to supply highly priced markets. When nominal price data were deflated over a 10-year period, the underlying trend reveals (Fig. 2) that farmers are not gaining from increased prices for their goods over time. This suggests that in the long term, increases in production for countries such as Uganda, which have not developed alternative markets for root crops, will be driven by population growth and demographic shifts rather than farmers increasing production to supply more lucrative and expanding market demands.

500 e po a o nornlna 400 reSh cassava 10yrs werage .2 300 .c 3 200

100

0 Cec Dec Jan Jan Jan Jan Jan Jan Jan Jan 1988 1989 1991 1992 1993 1994 1995 1996 1997 1998 Figure 2. Trends of nominal and deflated fresh cassava and sweetpotato prices in Kampala district, December 1988 to December 1998. Farmers' ability to adjust to changes in the market As part of a national baseline survey for cassava (IITA, unpublished data), farmers were questioned about cassava sales, access to market information, and their ability to react to changes in the market. Most cassava farmers sold a range of products including fresh cassava, processed cassava chips, flour, beer, and gin. Farmers indicated they had little access to official sources of market information but most had a reasonable knowledge of local prices. Market supplies were dependent upon the season and favorable conditions. In poor weather, farmers with surplus production have no problems with sales and traders buy from their farms at relatively good prices, as occurred during the 199718 season (a). Alternatively, when the crop is generally good, and farmers face low prices due to oversupply, they are required to transport goods to more distant markets and sell produce often at base prices, as occurred in 1998 (b). Most farmers indicated they were unable to respond quickly to changes in demand and were prone to unstable market prices as they had few avenues in which to diversify their risks. In 1998199 season (a), the prices of cassava and cassava products fell dramatically across the country. In the districts of Lira and Apac, prices for dry cassava chips fell from $200!t to less than $501t within 12 months. Farmers were forced to sell at the lowest price or opt not to harvest. Lack of market information combined with lack of access to new technologies means that even progressive farmers, who may wish to adopt new processing technologies to supply higher value markets, are not able to buy such equipment and thereby develop strategies to address market forces. To counter these problems, IlTA and the International Potato Center (CIP) have established a number of processing sites in collaboration with the Uganda National Postharvest Program (UNPP) and NGOslfarmers' associations to test the commercial potential for processing cassava and s\veetpotato into higher quality and higher value products. For cassava, the processing sites are focusing on methods to produce higher quality chips, flour, and more recently, starch. One lesson from this research has been that for farmers to have long-term success, they need to have a flexible marketing strategy. As market prices change for a specific commodity, farmers need to be able to adjust their outputs to supply the best option, including fresh cassava, cassava chips, flour, animal feed, brewing cassava into beer, distilling the beer into gin, or seeking potentially higher profits via starch and secondary processed goods. Compared with cassava, the market options for sweetpotato are less clear. Although cassava is already processed and traded in Uganda, sales of sweetpotato are almost exclusively confined to fresh tubers. To explore the market possibilities for processed sweetpotato products, CIP has set up experimental sites in Soroti and Lira districts to promote the sales of sweetpotato chips and flour. The CIPIUNPP scientists are also promoting the use of sweetpotato flour in confectionery products such as , cakes, and cookies in an attempt to stimulate demand for flour. The current status is that market options for sweetpotato products remain limited. Sweetpotato chips are not commonly traded beyond household sales and sweetpotato flour is an untested product. Techniques for processing sweetpotato into starch have not been tested in Uganda and at this stage, market options are therefore theoretical. In this situation, CIP has taken the pragmatic approach to test a range of potential market options including: Increased production of orange-fleshed tubers for processing into confectionery products, as a means to develop markets for high Vitamin A products. Market testing of sweetpotato chips, flour, and starch. Development of products such as sweetpotato jam and ketchup. On-farm testing of sweetpotato leaves as an animal feed for pigs.

Options for starch within the marketing mix of cassava processors Having a successful marketing mix is closely associated with being able to adapt to prevailing market conditions. In 199718, the retail price of cassava flour was approximately $400-550/t, which was similar to the price for imported starch ($400- 600). At that time it was more economic to process flour and import starch and prospects for marketing locai starch appeared bleak. However, the situation in 1999 is quite different, and farmers are selling cassava at low prices < $50/t. This fall in cassava prices makes flour a less attractive option for farmers, but makes cassava a more competitive raw material for processing into starch. Although the raw material is now at an attractive price for starch processing, little is known about the starch market in Uganda. There has been no analysis of the options for processing starch in Uganda; there are no reliable data on the size of the market, the potential buyers, and the quality of starch they require. Therefore, this study set out to gather more detailed information on the starch market in Uganda and to determine whether local processors could compete with imported starch. Starch properties, methods of production, and products

Starch is a highly versatile, renewable natural resource which is used in virtually all industrial sectors. In the natural state, starch is used as a binder, stabilizer, surfactant, texturizer, and bulking agent. Starch is also processed into a range of products including adhesives, sweeteners, and other more specialized products, such as biodegradable and superabsorbent polymers. Essentially, starch is a polymer of glucose found as a nutritive reserve in plants. Starch is composed of two types of polysaccharide molecules, one linear (amylose) and the other branched (anylopectin). In natural starch, these molecules are closely associated in structured microscopic granules, and in cassava starch, amylose content typically lies within the range of 16-18% relative to amylopectin (Bagalapolan 1988).

Stzrch properties Starch quality is determined by a number of characteristics including physical, chemical, and rheological properties. The physical and chemical quality factors include color, odor, pH, flow properties, granular size, shape, molechlar weight, and amylose content. The most important rheological characteristics of starch pastes include gelatinization temperature, viscosity, swelling capacity, gel clarity, and fkeeze-thaw stability or resistance to retrogradation.

Physical and chemical properties Grade A starch is a bright white color and the degree of whiteness can be assessed using either a simple visual score or by testing with a spectrophotometer. A simple test to assess visual contamination is by observing a starch suspension which is pressed between glass plates, the contaminant particles being viewed against a white sheet. Odor caused by fermentation on drying or moldiness from poor storage is undesirable. Starch pH should fall within the range of 4-7 for edible starch; high quality cassava starch is typically within the range of 6.34.5.Flow properties are measured by the amount of powdered starch that will pass through a sieve within a determined time period. High flow rates indicate higher quality and low flow rates indicate a high moisture content or lumpiness. Starch granules vary in size; for cassava, the range is from 5 to 40 pm. Granule shape can be determined by viewing under a scanning electron microscope. Cassava starch granules are mainly round, with a flattened surface on one side containing a conical pit. Molecular weight is determined by the amylopectin content, and the ratio between amylose and amylopectin is an important basic characteristic that affects starch performance. All of these parameters are used to classify starch into grades that relate to quality, price, and application.

Rheological properties The rheological properties are of most interest to processors as starch is generally used as an aqueous suspension. The behavior of starch on pasting, cooking, and in various forms of processing, determines product quality. Most forms of starch modification are involved with changing the rheological performance of a starch and tailoring rheological characteristics to increase process efficiency and end-product quality. Gelatinization temperature. When an aqueous suspension of starch is heated, water molecules around the granule disrupt the hydrogen bond~ngand enter the granules which then swell. This swelling and the absorption ofnater are an irreversible process termed gelatinization. The gelatinization process leads to the preparation of a viscous suspension and this determines the temperature at which a starch paste takes on the desired processing qualities. Due to the differences in starch granules' size and their heterogeneous structure, gelatinization does not occur at a specific temperature but across a temperature range. For cassava, this is from 58 to 70 "C. Various methods of modifying starch, such as cross-linking, reduce the gelatinization temperature, whereas the addition of surfactants, such as potassium palmitate, which prevent the penetration of water into the starch granules. increases the gelatinization temperature. These modifications stabilize the viscous behavior of the paste, making it more resistant to damage by acids, heat, or shear forces, and thus enhance the performance of starch during processing. There is some evidence that certain varieties of cassava have different gelatinization temperatures and according to Bagalapalan (1988) a lower gelatinization temperature is associated with reduced cooking quality. Viscosity. When an aqueous concentrated suspension of starch is heated to the gelatinization temperature, starch granules swell by rapidly absorbing the available water. As the starch granules absorb water, solubles arc leached from the granules into the aqueous phase. When the available volume of water has been absorbed, these solubles diffuse back into the granules until an equilibrium is reached. This complex structural matrix is highly dynamic and viscosity can be altered by changes in water content, temperature, mechanical forces, and pH. As with the gelatinization temperature, various forms of physical and chemical modifications affect starch viscosity. For example, starch viscosity is increased by esteritication or etherification. The most common method for measuring starch viscosity is by using a Brabender Visco-Amylograph. This instrument measures changes in the viscosity of a standardized starch suspension when it is subjected to a predetermined heating and cooking cycle. A Brabender Visco-Amylograph curve provides five key data points. 1. Peak viscosity represents the highest viscosity that starch paste can reach. 2. Viscosity at 95 T,which in relation to peak viscosity gives an idea of the ease of cooking the starch. 3. Viscosity after cooking at 95 "C for a certain period, which reflects the stability of the paste. 4. Viscosity of the paste after cooling to 50°C, which is a measure of the setback, i.e., the thickening or stiffening effect produced by cooking. 5. Final viscosity after stirring for a definite period at 50 "C indicates the stability of the cooked paste. Swelling capacity and solubility. Swelling capacity can be defined as the maximum increase in volume and weight which starch undergoes when allowed to swell freely in water. Solubility is a measure of the solutes which are leached from starch granules when tested for swelling capacity. Swelling capacity of starch is dependent upon the strength and nature of the associate forces within the network of the starch granule. Factors affecting the associative forces include (1) amylose:amylopectin ratio, (2) molecular weight of the fractions, (3) degree of branching, (4) conformation, and (5) length of the outer branches of the amylopectin. fall into three groups, according to the level of association. Cereal starches have the highest degree of association and the lowest swelling power and solubility, followed by root starches and tuber starches. The swelling power can be altered by acid modification or hypochlorite oxidation which weakens the granule network, causing a higher swelling capacity. Cross-linking increases the bonding between starch molecules and this lowers the swelling and solubility. Paste clarity. A suspension of starch in water is opaque and gelatinization increases transparency. Paste clarity is related to the state of dispersion, i.e., the level of dilution and the retrogradation of a sample. The term retrogradation refers to the deterioration in quality of a sample over a period of time. Cassava starch has a high swelling power and a low retrogradation tendency, and therefore has good paste clarity that is for products requiring clear thickening agents as used in and pie fillings. Freeze-thaw stability. On cooling, the molecules in a starch paste become less soluble and suffer retrogradation, i.e., a loss in quality. The effects of retrogradation include curdling of sauces on thawing, staling of baked products, and the formation of a skin on the surface of a starch gel. For many processed food products, it is desirable to have an elastic starch paste that does not undergo retrogradation on freeze-thaw cycles. Cross- linking starch and the addition of surfactants can considerably improve the ability of a gel to withstand freeze-thaw cycles. Table 3. Estimated world starch production (1992) (000 t).

Region or Sweet- % World country Maize potato Cassava Wheat Potato hher Total production

Nonh America 13,450 USA 13,200 Canada 250 Latin America 1,000 European Union 3,400 Eastern Eumpe 300 Africa - Asia 3,020 China - Japan 2,500 Thailand - Indonesia - India 200 VieUlam - The Philippines 75 Malaysia - Taiwan 45 South Korea 200 Australia 50

Total 21,220 Percent share 64% Source: Ostertag 1996.

Starch production and products

World starch production, markets, and products. In 1997, world production of starch was approximately 35 million t with a global market value of approximately $14 billion. As most industries have some application for starch, consumption is closely linked with industrial development (Lynam 1987, Table 3). The USA is the largest starch producer, accounting for over 40% of world production, and is also the highest starch consumer, using over 50% of world production. Europe produces nearly 20% of world production, followed by China (13%), and Japan (10%). Starch production and consumption in China run somewhat counter to the general market trends and China is unusual in that almost all the starch is produced from sweetpotato, whereas in the USA, Europe, and Japan, maize is the major substrate. In most of the world, starch is processed using industrial techniques, whereas in China, starch is extracted using traditional village methods. The main starch markets in China are for local noodle production with some supplies for monosodium glutamate. On the global market, starch supplies the industrial food and nonfood processing markets. Nevertheless, China is the second largest starch producing country with an annual yield of over 4 million t (Marter and Timmins 1992). Table 4. Starch source distribution in global market (excluding China). Starch type Percentage Maize (Corn) 80 Potato 8 Cassava 6 Wheat 4 Rice and others 0.5 Source: 1st 1998

Sources of starch Starch is commercially extracted from maize (corn), sweetpotato, cassava, wheat, rice, potato, and to a lesser extent from sorghum, arrowroot, sago palm, and banana. Starch from each source has slightly different functional properties, such as the gelatinization temperature, viscosity, and swelling capacity; however, they all have similar chemical reactions and are usually interchangeable. In cassava and sweetpotato, up to 28% of the root fresh weight is starch, whereas in cereal crops this figure is approximately 75% of the grain. Using chemical fertilizers and efficient methods of crop production, 7-10 tiha starch dry matter can be produced. Industrial starch plants in Thailand expect to extract 25% of the fresh weight of cassava as starch and seek efficiencies which increase the rate of extraction up to 2627% (Pers comm, Rupert Best). In the traditional rainfed, low input systems of countries such as Uganda, the level of starch extraction from cassava may be significantly less, i.e., in the range of 10-15% extraction with a yield of 1.0-2.0 tlha of starch. Apart from the rather specialized Chinese market, maize is currently the major commodity used for starch extraction, representing 80% of the world market (Table 4). Dent and flint maizelcorn varieties are used to make cornstarch for food, animal feed, and industrial products. According to figures from the International Starch Institute, Denmark, in the commercial world market, potato represents 8%, cassava 6%, wheat 4%, and rice and other products supply 0.5% of the starch market. In Uganda, the most likely source for starch is cassava as this is a cheaper product than maize and the process of wet starch extraction can he done with relatively unsophisticated processing equipment at small- and medium-scale levels. Across the world there is strong competition in prices for the different types of starch and industrial users can switch to the cheapest source of starch for most processes. In the past 20-30 years, many industries have shifted to maize starch due its low price and high quality, which have been achieved through increases in efficiency of both production and extraction. There is also a trend towards the use of more specialized modified starches. As the maize-based starch industry leads in the development of modified starch products, this has strengthened the market share for maize starch producers. Table 5. Uses of starch and starch products in the food sector. Native starch Baby food As a nutrient and a thickener Cream biscuits As a binder in the cream Meat products As a binder, reduces drip during smoking of meats Sausages As a binder Extruded and fried snacks Provides crisp, even browning and hampers penetration of oils Modified starch Ketchup As a thickener Soups As a thickener Sauces Improves appearance Mayonnaise As a thickener Noodlcs Increases viscosity, consistency, mouthfeel Subproducts Maltose Improves moisture retention and color control Dextrose Improves crust and dough properties Low foods As a s~vr-ectcner Beverages Beer maltose HFS is an excellent fermentation substrate Soft drinks IlFCS DE 42 and DE 55 are used as sweeteners Alcohol Very high DC glucose are used as fermentation boosters Confectionery MarmaladeIJam DE 63 increases sweetness and shelf life Ice cream As crystal and texture controller Dairy crcam As a stabilizer!s\veetener Fruit fillings As a s~eeiener Canned fruit As a sweetener

Starch products and uses Traditional uses of starch were for (1) thickening, filling, and bulking agents in food products, (2) binding and finishing agents in the textile and paper industries, and (3) the manufacture of gums and glues. The development of the starch conversion industry led to a major expansion in glucose and fructose production and, more recently, there has been a significant growth in the use of starch for nonfood products such as biodegradable plastics and textiles. Modern techniques enable starch to be extracted at high levels of purity and relatively low cost. This makes starch an attractive raw material for industrial processing, See Tables 5 and 6 for starch-based products used in the food and nonfood sectors.

Native starch. Native starch is the basic starch product that is marketed in the dry powder form under different grades for pharmaceutical, human, and industrial consumption. Native starch has different functional properties depending on the crop Table 6. Uses of starch and starch products in the nonfood sector. Native starch Pharmaceutical drugs Binder Paper Siring Textiles Binder Animal feeds Binder and nutrient Modified starch Paper Binding agent, filler, coating agent, coloring agent Textiles Sizing, filling and linishing, printinglcolor applications Cardboard Adhesives Plywood Adhesivesidextrins Corrugated board Gluesidextrins Fermentation products from glucose Ethanol Lactic acid Citric acid Gluconic acid Derived products from glucose substrates Diapers Superabsorbenl polymers Foundries Core binder in castings Concrete Retarder in concrete Detergent Redeposition inhibitor of dirt Agriculture Coating of to improve germination Dusting powders To reduce moisture Water For flocculation purposes Oil drilling mud Increases viscosity and reduces fluid loss Plastics and polymers Biodegradable plastics Polyester plastics Nonwoven textiles source, and specific types of starch are preferred for certain applications. Native starch can be considered as a primary resource that is also processed into a range of starch products. The are five major categories of starch and starch products, (I) unmodified or native starch (UMS), (2) modified starch (MS), (3) gluesidexhins, (4) sweeteners, and (5) starch-derived products (Table 7).

Modified starch. Modified starch (MS) is native starch that has been changed in its physical andlor chemical properties. Modification is achieved by transforming native starch through a range of processes including heat treatment, changes in pH, or by subjecting starch to enzymes and additives. Although MS resembles native starch in appearance, modification enhances the performance of the starch by improving specific functional qualities such as gelatinization temperature, paste clarity, viscosity, and film forming ability. Table 7. Major classifications of starch types and products. Unmodified starch Modified starch Dextrin Cornslarch Pregelatinized starch Thin boiling starch Cassava starch Oxidized starch British gum Sweetpotato starch Esters Yellow dcxtrin Wheat starch Ethers White dcxtrin Potato starch Cross-linked starch S!~cctcners Starch dc;i\ali\cs Maltodextrili Fermented products Glucose syrups Detergens Fructose syrups Uiodegradablc plastics Dextrosc Textile5

The main types of modification are: Gelatinized starch made by passing a starcli suspension over a heated rotating drum followed by cooling and drking. * Dexlrin types made from dry chemical treatment. Wet chemical treatment including thin boiliny, acidified, and oxidized starches. Modifications which involve catalysts and processes for cross-linking, esterification, and etherification. The food industry uses an increasing amount of modified starches. Acid-modified starches have a lower viscosity, higher gel strength, and improved clarity compared with native starch and these products are used in cakes and gum confections. Oxidized starch, made using hypochlorite, provides gels of low strength but improved clarity and these are used for production. Cross-linked starches have reduced stringiness and are best suited to pie fillings and canned pie fillings. Esterified starches are highly stable and do not retrograde on repeated freeze-thaw cycles. These are used in frozen products and starches. Acetylated starch has good stability at low temperatures and is used in canned, frozen, baked, and dry foods. Adhesives and dextrins. Adhesives can be classified as glues or pastes. Glues are more liquid than pastes and possess some form of mobility, i.e.. glues can be pumped, whereas pastes have poor mobility or none. Cooking starch in water and adding a preservative will produce a simple form of starch paste. These pastes are used for bill posting or sticking labels to bottles. The addition of salts such as calcium chloride at specific temperatures or borax significantly improves the adhesive properties. Clays and bentonites can be added as extenders and bleaching agents help to reduce film color. Dextrins are a more refined type of adhesive that is made by reacting starch with acid and heat or enzymes. They have a lower viscosity than simple adhesives, which permits their use at higher concentrations and makes their films dry faster with a stronger bond. They are classified as White dextrin, Yellow dextrin, or British gum. Dextrins have a wide range of applications, ranging from plywood and paper bonding to envelope seals and furniture making. Sweeteners. The starch conversion industry cracks the long starch polymers into individual glucose units to produce , dextrose, and fructose, all of which are commonly referred to as sweeteners. The conversion of starch into sweeteners is probably the largest single market for starch, and it is estimated that more than half of the starch produced in the world is converted into glucose and fructose. In the USA, more than 70% of all starch is converted into sweeteners which are used in the manufacture of soft drinks and confectionery products. Glucose. Glucose is produced by three standard processes, (1) acid hydrolysis, (2) acid- enzyme hydrolysis. and (3) enzymewmzyme hydrolysis. All of these reactions reduce the starch polymer chain into a mixture of monosaccharides, disaccharides, and intermediate products by cutting the glucosidic bonds. The product of hydrolysis is therefore a mixture of glucose and intermediais products and the quality of the mixture is characterized by the Dextrose Equivalent (DE) number. Commercial sweeteners are classified according to the DE number of the syrup. hence, maltodextrins are those syrups with a DE of less than 20. Glucose is the common name for the liquid syrup with a DE above 20, and dextrose for the solid . Maltodextrins are used in a variety of foods iiicluding soups. fruit-flavored mixes. cakes, and biscuits. Maltodextrins are prefei~ed to glucose due to their lower hygroscopicity. bland taste. and ability to give body rvithout adding too much sweetness. Glucose is used throughout the confectionery industry and is generally preferred to . It is used in tlie preparation of canned products. tomato juice, and a wide range of confectionery It is also used as the base for the tilanufacture of alcohols, gluconic acid, acetone. citric acid, sorbitol, and ethylene. Glucose is used by tlie pharmaceutical industq, in s, rup formulations. Crystallirle dextrose. This is inade b) concentratin_r refined glucose s?rup under vacuum to an 80",6 solids contcnt that is cooled and then cr)stallired. Dextrose is used in baking as a fermentable bugar; it also acts as a flavor arid fragrance enhancer. In the dairy industr)., dextrose is uscd in frozcn dessctts to control escess sweetness. Destrose is also is used by tlie phat-maceutical industry for intravcnous feuds and forniulations.

Fructose. Since the development of fi-uctoie processit~g,lructose sirups have largel! replaced glucose. Fructose is 1.7 titlies snecter tlrarr sucrose and 4 times sweeter than glucose and is therefore more ecoriotnical in large-scale proccssiny. Fructose is conveiTed froin glucose enzynialically. u.;ing lieat-stable glucose isomerase. The isomerase enzymes are obtained from specific types of Srep/o~,~~~cc.swhich yield thermal- stable isomerase (Bagalapolan 1988). In the starch convcrsion industry, high fructose syrups (IIFS) are sold as standard product, which are catcgorired by their DE numbers. Common products include HFS 42%. IIFS 55%. and tfFS 90%. The major use of HFS 55% is for soft drinks aiid flFS 42% is uscd in canned fruit preserves, ice cream, bakery products, jam, candy, aiid various othcr confectionery products. Dcmand Ibr HI5 has grown draniatically in tlie past 15 years, because of their excellent functional qualities and low price compared with sucrose (caneheet sugar). Starch-based sweeteners currently compete aith sucrose in all areas except dry mixes and nonhygroscopic sweeteners, such as required for table sugar. Starch derivatives. In addition to the market for sweeteners, glucose is also used as a primary product for fermentation into a range of products, such as ethanol, lactic acid, and gluconic acid. These fermentation products can then be further processed into indushial products such as solvents, detergents, drilling mud, explosives, biodegradable plastics, nonwoven textiles, and polystyrene products. This industrial product range, particularly the biodegradable plastics and textiles, is expected to grow significantly in the next decade. The reason for this growth is based on the fact that the primary resource, starch, is perceived as a natural, renewable, and ecologically sound resource and this "credibility factor" will be the marketing tool for sales of these processed products (Ostertag 1996). Cassava starch: markets, qualities, applications, and methods of extraction

The major markets for cassava starch are textiles, paper manufacture, dextrin pro- duction, food products, and conversion syrups. Cassava starch has four main qualities, high gel clarity which is superior to all starches except that from potato, excellent thickening characteristics, a neutral flavor, and desirable textural qualities (Blanchard 1995). It is also attractive to industrial users as it is low cost and, for many applications, less cassava starch is required than maize starch to achieve a particular function.

Textiles Cassava starch is used in three aspects of textile processing: sizing, finishing, and printing operations. Textile sizing. Sizing involves coating yarn with a smooth film of starch to enable it to withstand the abrasive and flexural stresses during the spinning and weaving processes. Size films are applied to the spun yarn as a thin coating. Typically, the amount of starch solution or "size" added to the yarn represents 5-15% of yarn weight. The starch effectively cements the yarn filaments and prevents "fuzz balls" caused by single filament breakages. Starch acetates, a form of modified starch, are mainly used in warp sizing because of their good yarn adhesion properties and improved tensile strength. Textile finishing. Most fabrics are subjected to finishing operations. These are intended to improve their stiffness and to add weight. For example, often a fabric is finished by immersion in a dilute solution of cooked starch. Afterwards, it is passed through a roller press to remove excess solution and dried on steam rollers. Cassava starch is softer and "naturally" more wansparent than maize starch and consequently 13 preferred for finishing fabrics. Hypochlorite oxidized starches which have excellent clarity are used for tinishing cottons, particularly those with high color prints as this type of starch does not dull colors. Textile printing. Starch is mixed with the coloring agent as a thickener to produce a clean, sharply defined pattern. Cassava starch is often mixed with wheat- or cornstarch to provide a good working consistency to the dye mix. Paper manufacture Although paper is mainly wood pulp,, starch is added to paper as a binding and coating agent. Starch is used at four stages in the manufacture of paper. Wet end application. Cellulose fibers require to be strengthened before they can be made into paper sheets and starch is added to the paper mix as a binding agent to increase the tearing and bursting strength. As it does in textiles, starch not only binds the cellulose fibers but also reduces surface fuzz, increases stiffness, and improves the strength which is required by high-speed mechanical processing of the paper sheets. Size press applications. This process applies a film of starch to the raw paper to (I) improve the appearance, (2) inhibit ink penetration, (3) form a hard surface for writing or printing, (4) reduce surface picking. arid (5) prepare the surface for subsequent coatings. All types of native starch are used in this process, although better results can be obtained by using oxidized starches or starch acetates. Cationic cassava starch is an excellent surface siring agent. Calcndcr/rollcr application. During the processing of paper, starch films are added to the paper surface via a series of rollers. The type of starch used depends on the type of paper, but for heavy papers, native or thin boiling starch is used. In base coat applications, lo* viscosity starch is used and oxidized starches are used for final coatings to control problems associated with paper curl. Paper coating. A final coat of starch is used as an adhesive in pigmented coatings. Cassava starch is the preferred product for this purpose because it is simple to prepare, has high adhesive propcrtics. stable \iscosity, high mechanical strength, and is low cost.

Dextrins Cassava starch is often preferred in adliesivc production as the adhesives are more viscous, work more smoothly, and provide stable slues of neutral pfl. The glues are easily prepared and can be combined with s)ntlietic resin emulsions for enhanced performance. Cassava paste is also neutral in taste and odor. Cassava dextrin is therefore preferred as a renioistening gum for stamps arid envelope tlaps because of its adhesive properties and agreeable taste and smell.

Food industry Because of the clarity of the gel, cassava is preferred for use in mixes and in confectionery products that require a clear gel or thickener, such as soups, pie fillers, and pudding mixes. Cassava is also the prcrerred starch for the production of , i.e., starch pearls, for reasons of clarity. The bland flavor of cassava starch makes it highly suitable for products with a delicate flavor or aroma. Cassava starch is also more readily digested than potato starch and for this reasoli is preferred in the manufacture of baby food. Cassava starch is also particularly suited to the production of expansion or "puffed products because of changes in the expansion properties of the material on gelatinization. Traditionally processed puffed products include Kerapuk, a type of cracker made in Asia, and Pan de buno, a type of bread made from fermented cassava starch in Colombia. Pregelatin~zedstarch has good solubility, digestability, and ease of preparation. The main market for pregelatinized starch is the "instant pudding" market and cassava starch provides the highest quality . Similarly, cassava starch is used in instant noodles, and this is a rapidly expanding fast-food market in China and much of Asia. Starch used in the manufacture of glucose syrup must be of high purity with a low content and in this respect cassava starch is again preferable to other unmodified starches.

Genetic diversity within cassava starch There is increasing interest in the use of native starch in industrial processing due to its higher ecological credibility, especially for use in food products, compared with chemically modified maize starches. Unfortunately, studies to date have shown that there are few differences in the quality of starch among cassava varieties. However, Blenchard (1995) suggests that much of the diversity in starch from maize has been achieved through genetic manipulation and more targeted breeding of cassava could achieve similar results.

Methods of starch extraction from cassava Cassava varieties fall into two main categories, "bitter" and "sweet" cassava, depending on the cyanohydrin content of the roots. In general, bitter cassava has a higher cyanohydrin content than sweet cassava and requires some form of processing before it can be eaten safely. For processing purposes, bitter varieties are most frequently used whereas sweet cassava is preferred for the boil-and-eat market. Extraction of starch from the cassava roots can be divided into five main stages: preparation, raspindpulping, purification, dewatering and drying, and finishing. For cassava, the process of starch extraction is relatively simple as there are only small amounts of secondary substances, such as protein, in the roots. When roots are selected for starch extraction, age and root quality are critical factors. Cassava roots need to be processed almost immediately after harvest as the roots are highly perishable and enzymatic processes accelerate deterioration within 1-2 days. A first-rate starch can be obtained using only water, and this makes the processing of cassava flour and starch particularly suitable for developing countries and rural industries. In many countries, the supply of cassava roots for starch processing is made on a contractual basis between a processor and outgrowers. Roots are purchased on the basis of percentage starch and this can be established by simple techniques such as snapping the root and judging the maturity of the crop by the color and the force needed to snap the root. The processor is seeking a mature, white, nonfibrous root. Starch content can also be determined on a gravimetric basis using displacement to gain an idea of density or by chemical means. In most cases, however, processing is conducted on the basis of root weight and payment is made on final starch yield.

Peeling and washing. In small-scale processing, the peel (skin and cortex) is removed and only the soft central part of the root is processed. When the roots are fresh, it is relatively simple to cut them with a knife to the depth of the skin and then cut or peel away the outer cortex. This leaves clean smooth tubers for processing. The roots are either heaped or stored in water and can be washed by hand to remove any remaining dirt before rasping. At the medium- to large-scale levels, a number of mechanical devices can be used for the processes of peeling and washing roots. The most common type is a mesh- coated cylinder that is partially immersed in water. As the cylinder is rotated, the roots inside the mesh drum wash against brushes and against each other; abrasion and washing remove skin and debris. Alternatively, roots can be cleaned and peeled within a large rotating screw, fitted with paddles. As the screw slowly rotates, the roots are moved along a 15 m axis and the action of abrasion removes the outer papery skin. As the roots move along the axis, water is sprayed at high pressure onto the roots to remove any dirt. At the factory level, the whole root is used for starch extraction. Siace the inner part of the peel represents 8-15% of the root weight, using the whole root significantly increases the extraction efficiency compared to manual methods that discard the peel.

Rasping and pulping. To maximize the efficiency of starch extraction it is necessary to rupture all the cells to release the starch granules. Typically, after one or more gratings, between 70 and 90% of the starch is liberated from the cells. Rasping can be done by hand but this process is usually power driven and the scale of throughput determines the quality and effectiveness of the rasping machinery. At the small-scale level, there are several types of rasping machines, depending on the local design. Most raspers consist of a wooden or metal rotating cylinder which has saw blades set into the cylinder longitudinally. Roots are fed onto the cylinder that rips apart the cellular structure of the roots to produce a fine mash or slurry. At the factory level, roots are first cut using a rotary knife to reduce the size of the roots to 3 cm cubes and these smaller sections are then pulverized in a rotary rasper or hammer mill. Water is added at this stage to produce a slurry that is forced through slot filters to further break down the cells and release the starch granules. Screening. Separating pulp from starch requires water and a filter. At the small-scale level, starch screening is carried out by hand. The pirlped cassava mash is placed onto a screen or simply tied into a cloth and the starch is pressed through the muslidnylon screen by hand, using a washing action. This batch system is relatively slow and the extraction rate can be as low as 10-15% of fresh weight (Kolijn et al. 1998). In small- scale production, waste pulp contains significant amounts of starch and this can either be used as animal feed, or simply remixed into flour for food. The screening process can be improved by using rotating cylindrical screens that are immersed in water or by the use of mechanized shaking screens. In larger factories, screening is replaced with a multistage filtration process. Roots are rasped or pulverized and the thippi or large fiber fraction is separated by using sieve bends or DSM screens. The coarse waste is dewatered and dried for animal feed. The slurry or "milk" from the first and second rasping and washing is passed through a multistage filtration process in which conical centrifugal extractors purify and wash the starch. Centrifuges are arranged in rows with a diminishing screen size along the row. The extraction gradient separates the coarse and fine fibers from the sluny. Waste from the extractor bank is fed to a separate system for dewatering and waste extraction. This waste is dried and sold as a finer feed for animals. After passing through the "light milk" extractors, the milk is batch fed into a high-speed centrifuge that concentrates the starch density to provide "heavy milk", with a moisture content of 40%. There are two main industrial processes for starch extraction, the Alfa Laval and the Dorr Oliver (Bagalapolan 1988). For more information on industrial processing, cyclone separators, and high-speed starch centrifuges, see the Alfa Laval website at www.alfalaval.com.

Settling and purification. At the rural level, starch is settled in tanks. After rasping and washing, settling takes approximately 6 hours and when the starch has settled, supernatant water is removed by opening stoppers on the sides of the tank. Starch is washed by adding clean water and agitating the mixture, before allowing it to resettle. Processors add sulphuric acid to improve starch whiteness and alum to increase the rate of sedimentation. In Brazil, the batch-type settling tanks have been modified into an S bend channel system wh~ch makes possible continuous processing and settling.

Preliminary drying. To improve the rate of drying, high-speed centrifuges are used in the larger factories to concentrate the starch slurry to a moisture content of 3W0% before drying by evaporation.

Drying. Sun drying is the cheapest form of water removal; solar dryers are used in all small-scale operations and by many medium-scale mills. After settling, the wet starch is spread out either into baskets or directly on to cement floors or floors covered with a sheet. The starch is generally crumbled before or during drying to break up the cake. An important advantage of sun drying is the bleaching effect but there are problems associated with dust and bacterial contamination.

Drying yards. These consist of a furnace at one end of a long floor. The heated air is channelled under the drying floor. The area nearest the furnace is hottest and distance from the heat source reduces the heat. The starch is moved from the coolest area towards the heat source to dry. This system requires that the starch is continually moved by operators towards the heat source and removed before gelatinization takes place.

Oven driers. A range of ovens can be used to dry starch. The simplest is a fue that is placed below racks. The fue is separated from the racks by brickwork, similar to an oven. This system can be enhanced by insulating the chamber walls and improving on the air circulation within the chamber. To make the shift from batch to continual flow systems, there are several types of continual process ovens including drum driers, belt driers, and tunnel driers.

Flash driers. For the larger types of factory, the most rapid means of drying is via pneumatic driers. The starch is fed from the concentrators to the air blast shaft and heated to approximately 150 "C. The starch is dried in the drying column whilst being pneumatically conveyed from the entry point to the top of the drier; a column may be 20-50 m in height. Insufficiently dried particles are separated and fed back into the system and the dry powder is transferred via a cyclone to a starch filter.

Finishing and packaging Crude starch often consists of large lumps and these ueed to be pulverized and dry- screened in a process known as bolting. Larger mills have bolting equipment whereas smaller starch manufactures use rollers. After rolling, starch is usually refiltered through dry screens to remove any remaining fibers. The starch is then stored in nylon bags, preferably with a plastic liner to prevent rewetting. Differences in processing according to scale are summarized in Table 8. For more details on starch processing, see www.starch.dk (tapioca starch extraction). Table 8. Summary of methods of starch extraction by scale of operation.

Small-scale Medum-scale Large-scale Activity < 1 Vday > 1 < 10 thy > 1&100 Vday

Preparation Wash mots by hand Wash mechanically Wash mechanically Preparation Hand peel roots with a Peel mechanically Peel mechanically knife Rasggnte roots either Rasp mechanically, Cut and ra~p.Add by hand or with a add water to slurry and water to slurry and small rasper possibly remp rerasphammer dl. Finally pulverize through slot filters Filter starch by hand Separate starch, fibcrs, Dewater slurry through through a cloth to separatc and dirt using basket a linear dewatering starch and come fihen type centrifugal filters centrifuge and remove wane fibers

Settle starch in la& Inhoduce wafer and re- Rerasp and add water filter along a bank of cyclone scpxators Remove supematant water Each separator ~n the Introduce water and re- and wash wet starch with bank has a smaller si7~ filter along a bank of clean water Agitate and filter to progressively cyclone separators allow to resettle remove din and fibers Dewatering Remove water from tank Concenbate starch in Concentrate starch in by decanting the super- high speed cenmfugal high spdcenmfugal natant water separators to reduce sepaIatodconcentrators moisture content to to reduce moisture 40% content to 40% Remove starch to a bcd Dry wet starch using Flash dy using or hay for sun drying solar drying yards or pneumatic heating drying tables, alterna- columns tively heat dry using continuous precesses such as drwnibclt driers Finishing Roll died starch to Bolt in roller mill Bolt in specialized miU reduce lumpiness Grade, if possible Grade Grade as required Pack dry starch in Pack in bags Pack dry starch in big 5W100 kg sacks 50 kg11 t hags (1 t) Waste pmducts Animal fkedlreprocessed Anid feed into other food products such as flour Starch production in Uganda

Uganda is a landlocked country more than 1,000 km from the coast. Importation of a low cost, bulky commodity such as starch via the Kenyan port of Mombasa is expensive. To overcome these problems, a medium-scale cassava-based starch factory was built in 1967 to supply the growing industrial sector in Uganda at that time.

The Lira starch factory The factory was located in Lira as part of a decentralized development scheme established during the regime of Dr Milton Obote (Fig. 3). The factory was managed by a parastatal organization, known as the Lango Development Company and owned by the Ugandan Development Corporation (UDC) and Lango District Council. The factory was sited ia the heart of the cassava belt, and cassava was supplied from a 200 ha farm and an outgrowers scheme. The factory output was 5 t of starchiday, which supplied the textile and paper industries. After processing, starch was transported by rail to the industrial towns of Tororo, Jirrja, and Kampala During the period of civil unrest and forced repatriation of the Asian community, the Lira starch factory was severely damaged, rebuilt, and then destroyed. Perhaps more importantly, the markets associated with textiles and paper also declined dramatically and much of the Ugandan textile industry moved to Kenya. Following the civil unrest, the Government of Uganda commissioned several studies with a view to rehabilitating the Lira starch factory. However, the Lira project is yet to fmd a strong publiclprivate sector partnership that can raise sufficient capital to revitalize the factory. The fust plans to rehabilitate the Lira factory were outlined in a report by the Industrial Development Unit (IDU 1987). In this report, it was planned to rebuild a factory unit to produce 10 t of starchlday with 4 t being converted to glucose and 1 t to dextrin. A second feasibility report was undertaken by the United Nations Industrial Development Organization (UNIDO) in 1991. The findings from the UNIDO report suggested that reopening the Lira factory was a viable business proposal and would have significant social benefits in this economically neglected part of the country (UNIDO Figure 3. Site of the Lira starch factory and areas of industrial activity.

1991). The plan for starch production was based on a factory operation involving a 3-shift system to produce 15 t of starchlday. The factory production would include 6 t of industrial starch, 1.5 t of pharmaceutical grade starch, 6 t of liquid glucose, and 1.5 t of dextrin. In 1991, the starch had a projected sales price of $77711 and the project had an internal rate of return of 40% over I0 years. The social benefits of the factory would include the provision of a long-term market to absorb local surplus cassava production and employment in an area that has few job opportunities. In view of this report, the East African Development Bank and the Ugandan Government made a financial pledge of $2.5 million towards the rehabilitation plan. It was envisaged that the private sector would provide the additional $3.5 million required to finance the project. However, the private sector did not respond favorably and no funding was made available to meet the rehabilitation prqject. In 1995, the International Starch Institute (ISI) was commissioned to produce a third report for the rehabilitation and modernization of the Lira factory (IS1 1995). This report suggested that the project concept was feasible, but that more details were required in both market analysis and the means of financial support. The IS1 report was critical of previous technical advice and suggested that the starch be produced only from wet processing and not by a combination of wet and dry processing as proposed in previous reports. The IS1 also suggested that the funding and management of the factory might he best addiessed through a joint venture between Ugandan and .(6661 1!ldv 51 'UO!SM MJN)iuawd!nba pUe s%u!pl!llq aqljo luaura3elda~lo mamqs!qmjar roj spunj Bu!~!~!los am slolsahu! le301 aql 'luasard iv '%op Bu!u!ema~ aqi Klddns sramofilno wqi papuaiu! s! 11 .sle!ra~emme1 aql 30 %09 01 dn Klddns plnoqs qqqm 'UUEJ ehesse3 e ~OJJparlddns aq plnom iueld %u!ssam~daql '~roda~naI aqi Kq palsa%%nssv .Xressa3au uaqm pasn aq Keur mess83 pa!rp qanoqile ["ralem me1 u!em aqi aq II!M ehesses qsaq ,ueld %u!ierado aql 01 8u!pro3av .Krlun03 aql u! siaqrem qsrels jo a%uar llnj aql i!oldxa 01 sm pun 'u!nxap 'SNn ape'% q%!q 'SNn prapueis %u!pnpu! slsnpord $0 a%uel e asnpord 01 s! slaumo mau aql Kq pasodold Kaaiens %~!13~1lmaqL 'SKn unqi Jaqisr u!lluap pun ~mse qsns slmpo~dq3iels 103 SVM pueluap aqijo ired a%rele 1eq1 pun03 Kahms aqi '1ahamoH ,sa!i$snpu! le3!$na3emreqd pue 'alllxai 'pooj aqi u! 1Kp 005'~sem epue%n u! qsmis 103 puemap ieql paiem!isa pue Ka~~nslaqrem p!der e ino pa!*les ',,pi7 q~rel~erg,, 'sraumo mau aqL ,Kiol3ej aqi alel!l!qeqar 01 uo!ll!m ?S$ K~aiem!xordde lso~~I!M I! 'sroia!rdord mau aql oi %u!p1033v '(qsn) s%u!ll!qs uepue%nuo!l[!ur 001 se pauodar arn%!j e roj Kroi3ej qareis e1!7 aqijo sas!mard p~larapaql paseq~rndsrolsahu! uepue%n30 dnor%e 'uaqarapun %u!aq sem Kpnis s!ql ls[!qm '8661 u1 'epue8n u! %u!ssa~oldqs~eis lap!suos plnoqs srolsahu! arojaq [e!massa sem uo!ieunoju! iaqrem papelap arom ieqi pue sa~n%!jr!aqi uuguos oi apem aq plnoqs Lahrns iaqrem pal!eiap e leql papnlsuo3 ~roda~ISI aq~ .iseg led aql pun 'adorn3 'e3!yv qinos 'etuezueL 'eKua>t 01 snldrns Ips 01 ueld e qi!m epue%n u! plos aq plnom qalels aq) jo %op K[alem!xorddv .uo!$anpord e~esse3[euo!leu aql 30 %Z sluasardal a1n4!3 s!q~.le!raiem qsaq jo 1 OSL'~~m013 kep~slel~pOE annpord oi m!e pInom K~oisejaqL .smaK z.pjo am!i q3eqKed e qi!~'%OE jo urnla1 jo aier [auraiu! ue peq ueld isarord aqi pue (uo!ll!m 6-a$) (>txa) rauoly qs!uea uo!ll!m 09 sem K~oi3ejq~reis el!^ jo uo!iei!l!qeqar aql 30 is03 IeioL 'I/OSS$ jo a~!rd eledue)~.3.!.3 pa13adxa UB ql!m 'eseqmoN ~O'Jo~p$ sem 5661 U! q3reis jo a~!rd aqJ ooz'p ie e!uezueL pue 'rKp 000'9 ie eKua2 ql!~'000~ leak aq1 Kq rip 000'5 30 uo!%al aqi u! laha1 uo!idmnsuo:, qsleis e aAeq plnom epue%nleqi paisa%%nssam I! 'uo!ielnsle3 s~qioi %u!p~o~~v~ND 01 pale1aJ sem ieqi qsmls $03 puemap pais!pa~d e uo paseq sem i~arordaqi jo Ki!l!qelh J!mouoaa aqL .8u!ssa3ord iua!~!jja roj papaau sle!laiem mer jo Kl!lenb pue sfaha1 aqi pue %u!ssa301d qslels JOJ s[!eiap le3tuqsal sap!ho~d irodar ISI aqi JO q3nN .qsmis %u!sn sa!qsnpu! aqi moq uoddns u!e% oi pun 'suo!mi!isu! ~epueugle:,ol mo13 spunj asp03 'uo!iemroju! laymm alqe![ar 01 ssame 103 pa3eld [lam s! Li!unmmo:, ssau!snq ue!sv aqL .e!puI moy pairodur! s! epue%n u! pasn Kliua~m3qslels aql jo q3nm pue satnsnpu! uepue%n u! srap[oqayais lorem are srnauardarlua uefsv -~SXaqi u! sl[!qs 4u!ssa3o~dq3rels aql pue epue%nu! sue!sv Kuem 30 asuasard aqi 01 anp 'adorn3 ueqi epue%nu! sllqs pug a3ueur) jo amos Klaq!~ arom e rago Kem leql (VSX) e:,!rjv qmos 30 sqqnda~aql lo e!sv morj lualunahu! jo sa!it[!q!ssod aqi a~oldxaIOU p~p-i~odar aqL ,~sarordaq) dolahapar L11njssa33ns o) Kressasau slpqs [e!~a%euempua lel!des aqi appo~dplnom oqm s1olsanu! ueadornz Starch market survey

The starch market survey was undertaken to provide a more detailed estimation of starch usage in Uganda and to compile a list of users, products, and processes that include starch and starch products. Information for starch import prices and sources of supply was recorded from a range of sources to assess the accuracy of market information. A preliminary study was also conducted to rapidly assess the starch market in Kenya, with a view to assessing opportunities for the export of starch from Uganda. The purpose of gathering this information was to determine the size of the starch market and to evaluate current market opportunities for starch processing in Uganda and the prospects for starch marketing in the longer term.

Methodology The main survey targeted the manufacturing and service sectors in Uganda including the pharmaceutical, food, textile, paper, plywood, laundry, tobacco, and paint industries. The survey was conducted in the towns of Kampala, Jinja, Mukono, and Mbale, and districts of ~ororo,Mbarara, Rakai, and Kasese. In.Kenya, the survey conducted interviews with two starch factories and 21 starch-using companies in Nairobi. In Uganda, factories were sampled from the business registers of the National Statistics Department, the Uganda Manufacturers Association, and the Business Listing of the Monitor newspaper. Companies were also visited, based on anecdotal information of starch usage and information gained from other interviewees. In most cases, initial visits were made, then interviews were arranged although much of the information required secondary verification. Tables 9 and I0 list Ugandan factories and institutions that use.starch and starch products in their processing. Interviews with company representatives were conducted using a formal questionnaire (Annex 2). Those companies interviewed that did not use starch are listed in Annex 3. Table 9. Factories and institutions that use starch in Uganda.

Costit Institution* (1998) Source Pharmaceutical sector 1. -A-- Kampala n.a n.a 2. -B- Jinja BP $800 Holland UMS $450- India 650 Kenya Food sector 3. -C- Kampald UMS $400 India Mbale Tororo UMS $40& India 600 Kenya Kampala na n.a n.a Kunpala na n.a n.a Jil?ja UMS $40& India 600 Kenya MS n.a n.a MS na na UMS $40& India 600 Kenya Nonfood sector 11. -K- Mbale na n.a n.a 12. L - Jinja UMS $400 India 13. - M - Kampala lJMS $400 India 14. N- Kampala Liquid starch $1.>2.00/1 n.a 15. -0- Kampala Liquid swch $1.>2.00n na 16. -P- Kampala Liquid starch $1.5-2.00A n.a 17. -Q- Kanlpala Liquid starch $1.5-2.0011 n.a 18. - K - Kampala Liquid starch $1.5-2.0011 n.a 19. -S - Kampala Liquid swch $1.%2.00n n.a 20. - 'r - Karnpala Liquid starch $1.5-2.0011 na Total confirnicd usalir

- ~ p~~p - ~- - n.a = not available. * Namcs deleted to preserve confidentiality.

Use of starch and starch products by major industrial sectors in Uganda The results, based on the information from 80 companies, revealed that 30% of the respondent companies used starch; within this group 80% used maize starch, 10% MS, and 10% cassava starch. The starch users in Uganda were divided into three main categories pharmaceuticals, food, and nonfood Each of these sectors used between 200 and 500 t of UMS or MSIyear. This suggests that the national consumption of starch in Uganda is probably within the range of 1,000 to 1,500 tlyr (Table 10). Assuming a value of $500/t, the starch market including UMS and MS has a value of between $500,000 and $750,00OIyear. Table 10. Factories and institutions that use starch-derived products in Uganda. CostJt Institution* District Type tly r (1998) Source 1. -AA - Kampala Glucose syrup n.a 2. - BB - Kampala Dextrin 10 3. - CC - Jinja Glucose symp n.a Fdsector 4. - DD - Kampala Glucose synrp 800-1000 $6W-700 Kenya Yugoslavia India 5. -EE- Kakira Glucose syrup 216 $520-590 Kenya 6. -FF- Kampala Glucose syrup 240 $610 7. - GG - Kakira Glucose syrup n.a 8. - HH - Kampala Glucose syrup n.a 9. - I1 - Kampala Glucose syrup 35 10. - JJ - Kampala Glucose syrup 300 $6W-700 Kenya Nonfd sector 11. - KK - Kampala DexUin n.a manufacturer 12. - LL - Jinja Dexbin 60 $200 13. - MM - 150 14. - NN - Jinja Dexain 60 15. - 00 - Kampala Specialist dexhins 18 $1.@2&2,000

Total sweeteners Total dextrins n.a = Not available. * Names deleted to preserve confidentiality.

The use of sweeteners in the pharmaceutical industry was not determined, but the food industry indicated that consumption of glucose syrups and HFS was in the range of 1,500 to 2,000 tlyr (Table 10). Assuming a value.of $600/t for liquid glucose, this market has a value of approximately $9,000,000-$1,20O,OWyr. Dextrin usage was probably underestimated in this survey but can be estimated to be within the range of 500 and 750 tlyr. When a value of $3W$500 is assumed for pastes, adhesives, and dextrin, this market may have a value of $200,0W$300,000/yr. The combined value of these markets is $2-3,000,0001yr.

Pharmaceutical sector. Information from the phannaceutical sector found that multinational companies did not procure starch locally as they manufactured their products overseas and only packed and retailed in Uganda. Starch prices from the local pharmaceutical manufacturers suggests that both high grade and UMS were used in the preparation of medications. Although pharmaceutical suppliers use liquid glucose in the manufacture of syrup formulations, the level of syrup usage was not revealed. Food sector. The food industry used a combination of UMS and MS costing $400- $800lt and a substantial amount of liquid glucose or HFS. Specialized companies in Europe supplied MS, and although one price was quoted at the unlikely figure of $60/kg, i.e., $6,00O/t, only small quantities were purchased to meet the needs of specific processes.

Nonfood sector. The Ugandan textile industry uses maize starch. The amount used by the textile factories was approximately 300-350 tlyr and other nonfood processors, including plywood and cardboard box industries, used 100-200 tlyr. Much of the starch used by plywood and paper processors was in the form of dextrin. Starch for the nonfood sector was imported from lndia and Kenya at a cost of between $400 and $650lt. The level used by the textile factories would have been significantly higher if these companies used only starch in their processing, but low-cost flours often replaced starch, and this distorted the market profile.

Sources of starch procurement Results from the survey indicated that 10% of the recorded amount of starch was purchased from retailers in Kampala, of an unknown source. However, 90% of those interviewed said they imported starch from Kenya and lndia with some procurement from European sources. They indicated a number of problems associated with importation into Uganda, including delays in transit and delivery, high transportation costs, and the need for a high capital stock, which had cash flow disadvantages. On review, it appears that the range of importation sites was rather limited from this study and that most buyers were purchasing from either Kenya or India. During the survey, the buyers did not mention the Internet as a source of procurement and this may he a lost opportunity, particularly if clients are seeking occasional and perhaps low quality goods. Most major starch producers and also starch support industries selling processing equipment have web pages which can be accessed with relative ease using a standard web search engine. A simple search will reveal a number of sales points, offering a range of products, including standard grade starch and starch lots. There are even offers for low-cost, "off-grade" or low quality starch that might be of interest to nonfood processors. The IS1 has also initiated a market place on their web page for producers, traders, and consumers to facilitate starch trading, www.starch.dk

Indigenous starch production During the survey, only one local Ugandan starch producer was identified. It was claimed that the capacity of this factory was approximately 30 tlmonth, i.e., one tlday. The factory was in full production from 1989 until 1994 and supplied dextrin to the brewery and edible oil industries. The starch factory was provided with chemicals from the purchasing factories to make and supply the glue. Currently the factory is producing only I to 2 t of starch/month, or less, to supply a local pharmacist and the brewery. Information from the factory indicated that over the past few years, demand had favored maize starch rather than cassava starch. The factory produced maize starch at 2,000 Ushikg ($1,48Iit), and cassava starch at 1,500 Ush/kg ($l,l l lit), (exchange rate $1 = Ush 1,350, 1998). Low output was attributed to poor market demand, although lack of demand may have been more related to competition from imported goods, that are either cheaper, of higher quality, or modified (Table 11).

Starch prices Due to the increasing global demand for starch and the use of high volume industrial processing, world market prices for starch are highly competitive. Nevertheless, prices vary according to the country of production, source of starch, quality, and changes in currency value. As shown in Table 11, cassava is generally the lowest cost starch as it is produced in countries with low labor costs.

Table 11. Market prices and suppliers of starch and derived products.

CounIn Product Cost i$/t) Source Yea Thailand Casbava starch $320 fob. Bangkok 1988 Cornstarch $35&370 fob. Bangkok 1988 Thailand Cassava starch $210 f0.b. Bangkok 1999 Cassava starch $135' fo.b. Bangkok 1999 Cornstarch $32&350 f 0.b. Bangkok 1999 l lFS $350 f 0.b. Bangkok 1999 Brazil (R & bl Native cassava starch $320 f0.b. Brazil 1998 International) USA (Ramblin (lorp) Cold 11,O suluhle cornstarch f0.b. USA 1998 India (Anil) Cornstarch c.i.S. Mornbasa 1998 Cornstarch c.i.f. Mornbasa 1999 Cassava starch f0.b. Mombasa I999 Kenya Cornstarch fob. Eldoret 1998 Kenya Cornstarch c.i.f Kampala 1998 Kenya Cornstarch f.0.b. Eldoret 1999 Kenya Cassava starch f0.b. Mombasa 1999 Pakistan (I labib Arkad? Ltd.) Liquid glucose f.0.b. Pakistan 1999 High fructose syrup f.0.b. Pakistan 1999 c.i.f. prices = + $65R Uganda (Rakai) Cornstarch* $1,481 c.i.f Kampala 1998 Cassava starch* $1,111 c.i.f. Kampala 11998 'May-June 1999 prices

36 Kenya Corn Products Corporation Ltd. is the starch factory nearest to Uganda and the prices for Kenyan corn starch in 1998 ranged between $590 and $660/t c.i.f. Kampala. Cassava starch from India in 1998 was quoted at $400lt c.i.f. Kampala. In 1998, the standard world market price for maize starch ranged from $300 to 400lt. More recent information from Thailand indicates a significant fall in cassava starch prices to a price below $200/t f.0.b. Bangkok 1 January 1999. However, according to the Thai Tapioca Trade Association Bulletin of April-June 1998, the new target for 1999 is to export 500,000 t at a price below $200/t. This fall in price is the result of the devaluation of the Baht, caused by the currency crisis and general recession in southeast Asian economies.

The Kenya starch market One of the strategies proposed in the IS1 starch feasibility study was to sell surplus Ugandan starch production into Kenya and Tanzania. To gain an insight into the Kenyan starch market. a rapid survey was undertaken in Nairobi and Mombasa. In Kenya, starch and starch products are produced and supplied by two companies, Kenya CPC Ltd. based at Eldoret, and Tapioca Ltd. based in Mazeras near Mombasa. Kenya CPC Ltd. produces andlor imports and \\;holesales corn starch, glucose syrup, and more specialircd starch-based products. According to anecdotal information, the cassava starch processor, Tapioca Ltd., does not operate at full capacity or on a year-round basis, and often imports starch for local retailing. At tile time of this survey the cost of corn and cassava starch was approximately $550:t. In 1997, Kenya CPC supplied a range of starch and starch-derived products to the textile, paper, cardboard, brewing, and food industries. These included UMS, MS, and desired products such as glucose and HFS. The approximate sales volume for all products was 19,000 t in 1997 falling to 17,000 in 1998. It is clear that Kenya CPC not only supplies thesc products to a broad range of manufacturers, but that the company has a relatively high capacity for supply. Kenya CPC is supplying starch products to the domestic market and is also exporting to both Tanzania and Uganda. According to the Kenya survey report, until recently Kenya CPC held a virtual monopoly for starch processing and supply in East Africa. However, three new companies, Anil Starch of India, Ghalam of , and Meelunie of Holland, are now marketing starch from Kenya to the region and this has increased the level of market competition. From the sample of 21 companies surveyed in Kenya, 19 were located in Nairobi, and 20 were privately owned. These enterprises included the paper, food, textiles, beer, meat, pharmaceutical, and adhesive manufacturers. The products made by these companies included corrugated paper, cartons, medicine, glue, beer, fruit juices, sauces, soups, baking powder, sausages, and soap products. All the factories interviewed used corn starch, but 15 of the 21 respondents indicated they would be prepared to try cassava starch if the quality was high and prices competitive. Although it is difficult to provide firm figures on the size of the starch market in Kenya from such a rapid sample, sales records indicate a supply of at least 20,000 tlyr. Taking into account exports to Uganda at an estimated level of 1,000 t which was captured from the Uganda survey and .supplies of approximately 5,000 t to Tanzania, it can be assumed that Kenyan industries are consuming somewhere in the region of 12,500-15,000 tlyr. This range takes into account supplies from the three new starch companies into the domestic market. This market bas a value in the range of $7.5-12.5 million. The level of starch production indicates that Kenya has the necessary capacity and is already supplying starch and a full range of starch products to manufacturers in the region. This fmding suggests that unless a starch factory in Uganda is particularly price competitive, it will face strong and probably insurmountable competition for sales outside Uganda. Also, the presence of marketing agents for the three international starch companies suggests that prices in Kenya will become more competitive in the future and that sales within Ugandawill also become more competitive.

Fresh competition from South African starch manufacture Although cassava starch is produced only intermittently in Kenya due to high internal costs, a new company in South Africa, CS Manufacturing Ltd. (CSM) opened a new cassava-based starch factory near Pietersburg, Northern Province. The factory has a capacity to produce 60 t of starchlday. Reports from the company suggest that cassava grows well in South Africa and that the yields are higher than in South America or Thailand. According to the marketing department of CSM, South Africa uses approximately 90,000 t of starchiyear, primarily in paper, cormgated board, and food products, and so the CMS factory could supply approximately 20% of this domestic market. The South African starch market has an annual value of R150 million, ($30 million). The effect that this new player will have in the African starch market is unclear, but if the marketing has been done well and production costs are indeed low, then the South Africans may provide a new local competitor in East Africa.

Starch replacement One of the more interesting findings from the survey was the number of companies in Uganda that have resorted to substituting flour for starch in their processing. The survey data indicated that most nonfood processors use cassava flour as a partial or total replacement for starch (Table 12). According to the textile manufacturers, flour serves the same purpose as starch, is cheaper, and locally available. Table 12. Factories replacing starch with cassava or maize flour. Site* Location thr -U- Mbale 200&2500 -V- Jinja 720 -W- Jinja 60 I -X- Jinja 58 I Names deleted to preserve confidentiality Reports from one of the major textile mills in Uganda revealed that it had virtually stopped using starch because of its high cost but instead uses a considerable amount of flour as a substitute. The factory uses a combination of maize and cassava flour with a local purchase price of 300-450 Ushkg ($222-333lt) for cassava flour and 350450 Ushikg for maize flour. The factory uses local flour to reduce production costs and the cost of the textiles as the.factory supplies low-cost textiles in response to market demand. Currently the textile mill is competing with imported secondhand clothes and is therefore forced to sell into a low-cost market. The largest textile factory in Uganda uses a combination of starch and cassava flour. One t of cassava flow costs $250-350 compared with a delivery price of $4004501t for imported starch, so using flour provides a considerable saving in production costs (Table 13). The widespread use of starch-flour mixtures or the substitution of flour for starch was a complicating factor for the survey team. In several cases, it was necessary to revisit factories to confirm actual starch usage, as factory employees were reluctant to discuss starch replacement.

Flour prices relative to starch prices in Uganda Although the replacement of imported starch with locally available flour has several advantages in terms of lower price and availability, the price factor is not always constant. In the 199718 seasons, the prices of local flour were relatively high because of the adverse effects of the seasonal and longer term weather patterns on crop production. At the peak period of 1997, prices of maize and cassava flour were considerably higher than international starch prices and at that time it would have been unrealistic to consider

Table 13. Starch and flour usage by major industrial sectors. - -- -- Starch Glucose Dexuln Total starch Maze Cassava Combtned Industry VY~ VY~ Uyr products Vyr flour f/yr flour dyr total t/yr Pharmaceutical 1W2W n a 10 200 0 n a 200 Food 450-550 800 n a 1,300 3W n a 1,MX) Nonfood 300-500 na 140-200 580 60 zoo0 2,640 ~~ ($1 4WW MX)-700 2W00 - 400 2(WW - 'Td (1) 950 800 316 - 360 Zoo0 - Emmatedrmge I,MO-I,MO 1,~1,500 300-500 2,300-3,500 500-I,wO 2,K&2,MO4,54%5,500 (1) na =not available Table 14. Retail prices of starch and various flours in Uganda, 1998, fourth quarter. - - - - Consumer price ranaeikg (Ush) $ Costsit Cassava flour 17&300 1 1&200 Maize flour 40&800 27&530 Wheat flour 80&1.500 53&1,000 (27&300 t*) Maize starch 2,00&500 1,30&1,600 Cassava starch 1,50&2,000 1,000-1,300 Spraylaerosol starch 4,50&6,000 n.a 'price of imported flour. n.a not available. anything other than starch importation. However, in 199819, prices of cassava and sweetpotato fell to below the IO-year average (Fig. 2) and therefore the low cost of root crops made local starch manufacture considerably more attractive. The information in Table 14 shows that cassava flour prices have stabilized at lower prices in recent months and with the recent fall in the value of Ugandan shillings against the US dollar, cassava flour can be purchased at considerably lower prices than most imported starch products. The question of availability is unclear and it is assumed that taking 2-3% of the total production for starch processing would not lead to a dramatic shift in prices.

Differences in starch consumption in this survey compared with the IS1 values The findings from the Uganda survey indicated a domestic starch consumption of 1,000-1,500 tlyr, which was considerably less than the range of 4,500-5,000 t predicted by ISI. The disparity between the predicted and survey figures may be related to the structure of the Ugandan economy that is more dependent on trade than manufacturing. Consequently, GNP figures used by the IS1 may not be an accurate measure of manufacturing capacity. However, it is more likely that the IS1 figure did not take into account the high level of flour substitution. The combination of starch and flour used for industrial processing in Uganda provides an estimated consumption figure in the range of 4,5006,500 tlyr as predicted by ISI. The findings from Kenya indicated a market at 15,000-25,000 t/yr that was 2 to 3 times higher than the IS1 prediction of 6,000 t. The reasons for the differences between these two figures may be a result of regional supply from Kenya and also the more industrialized nature of the Kenyan market, but further studies are required to confum the consumption and export patterns.

Starch quality as required by the users When questions were asked on starch quality characteristics, all users required a product that was white, fine, and odorless. For imported starch, the priority factors that determined purchase were price and delivery time. When interviewees were asked for their requirements for local[y produced starch, the response was quite different. All users indicated that if they were to purchase locally made starch, quality would be their highest priority. The second most important factor was reliable supply; less than half of those interviewed suggested that price would be the second most important factor. The specific request for quality in locally manufactured starch rather than price suggests either that interviewees assumed prices would be low, or they lacked confidence in the expected quality of the local product. Nevertheless, the two textile producers stated that they would be interested to test locally made cassava starch or high quality flour, but would purchase the product only if the starch quality was the same as imported starch and the price was highly competitive, thus implying their preference for low-cost cassava flour.

Market potential for high quality cassava flour in the food sector In addition to supplies of high quality flour to the nonfood sector, a recent market survey was conducted by Gensi et al. (2001) to evaluate the prospects for the incorporation of cassava flour into bakery products. The cassava flour survey revealed that 74% of confectionery manufacturers in Kampala and Jinja had, at some time, tried cassava flour in their products, but that all had subsequently stopped using it because of the poor quality. The bakeries found that, although costs were reduced when cassava flour was used, products were found to be of a significantly lower quality due to problems with cassava flour color, odor, and contamination A similar finding was observed in this survey. When bakeries were informed about methods to replace wheat or maize flour with high quality cassava flour, a number indicated that they would be interested to test high quality cassava flour, particularly for biscuit manufacturing (Table 15).

Table 15. Confectionery manufacturers response to cassava flour. Output loaves Cost of Tried cassava Interested to Name /day wheatlt flour Results try HQCF 4,000 Vday Yes Products poor quality Yes 300 Vday Yes Vely poor quality flour Yes 26 t wheaWm No - No 1,000 Vday No - Yes 1,5,000 Vday No - No 1,200 Vday No - No 1,400 Vday No - No n.a No - Yes n.a No - Yes n.a No - No n.a No - No fl.a No - Yes n.a No - Yes n.a = not ava~lable. = not tested. * Names deleted to preserve confidentiality.

41 Market opportunities for cassava and sweetpotato products

Cassava The market survey indicated that there a?: prospects for replacing imported starch with locally produced cassava starch or flour, if the quality is good and prices are competitive. Given the high level of starch substitution within the nonfood sector, there are considerable opportunities to supply high quality cassava flour to industries including those producing textiles, plywood, fiberboardlcardboard, and to low grade paper manufacturers. With regard to the food market, traditionally processed cassava flour is already sold in the retail market and several retailers sell cassava flour at 35M50 Ushkg and mixtures of cassava and millet flour at prices of 1,000-2,000 Ushkg. The flour used in the retail trade is traditionally processed and therefore higher quality cassava flour is likely to gain a premium price in this market. According to Gensi et al. (2001), there are also reasonable prospects for increased sales of higher quality cassava products in the food sector, particularly for the manufacture of low grade biscuits where gluten content is less imponant than in bread production.

Sweetpotato No trading in sweetpotato starch or flour was identified in this survey and there appears to be a clear divide in the cassava and sweetpotato markets. Whilst cassava products are already widely traded in Uganda and East Africa, sweetpotato is traded only as a fresh product. The major problems for sweetpotato products include the quality after processing, as the chips develop a brow11 color on dying and the flour has a sweet taste. Further studies on product development are required before sweetpotato products are likely to show market potential. CIP, in collaboration with Makerere University and UNPP, is currently exploring possibilities for sales of value-added sweetpotato products, such as sweetpotato-based jam, orange sweetpotato flour, and leaves for animal feed. The sweetpotato jam is at the pilot stage and is being sold in Kampala for 2,000 UshI450 g. There are other products, such as ketchup, which are sold in other countries. A considerable amount of training is being done to show processors how to use sweetpotato flour in a range of confectionery products (Owori 2001).

Market options for processed root crop products Having established that markets for cassava starch and flour exist, the next issue is to determine which type of delivery system can best supply these markets. From the survey information it was concluded that there are four main options: 1. Starch importation. 2. Medium-scale factory starch production. 3. Small-scale starch production. 4. Replacement of starch with high quality cassava flours. To evaluate these options, there are a number of aspects that must be considered. These are (1) product price, (2) product quality, (3) technical feasibility for supply, (4) investment costs for local processing, (5) returns on investment, (6) availability of raw materials, (7) ability to supply markets on a regular basis, (8) possibility for substitution, (9) socioeconomic benefits in terms of national revenue and employment, and (10) potential problems. A summary comparison of these aspects is detailed in Table 16 and the following section provides a discussion of the advantages and disadvantages of the four options.

Starch importation Due to the lack of manufacturers in Uganda, almost all processors import maize/cornstarch because of its high quality, competitive price, and year-round availability. Although there is a cassava processing starch factory in Mombasa, (coastal Kenya), no companies in Uganda reported that they were using their products. Starch prices on the international market are relatively low and due to the competitive nature of this market, prices are likely to remain relatively stable in the near future. The devaluation of the East Asian currencies made Thai starch particularly low cost in dollar terms, in 1999 particularly. Figures from Thailand indicated prices as low as $135/t. Given these prices, overall market stability, no requirement for fixed cost investment, and the erratic nature of local crop prices, continued importation of starch is a highly attractive option. In addition to low costs, the external starch suppliers can provide a full range of products tailored to specific needs. Factors limiting starch importation for Ugandan buyers include the cost of transportation, delays in transit, and cash flow problems which are associated with stockpiling or payment for advance orders of starch. Because of cash flow problems, some industries supported the idea of local starch production. Table 16. Commrison of the four identified market ootions:

Factory starch and nllag~lrvslsmhtfluur subpmdud processing pmecssini

Product quality High Medium to low Medium to high Pmduet mgcor marketing All produce Pharmaceutical starch Native starch Flour mix lndustnal starch Flour Feed Liquid glucose Feed Waste to farm animals Dexmn waste to farm animals Waste to feed market Capacity Unlimited 5-10 t UMSIday 1-5 t glucose/day 1-2 t dexhidday ~mductioncase see able 18 unk"0wn Starch - USS27&3W/t US$100-I50 Purchase price US S5W50cif. Kampala UnLnown Starch - USS350-400lt LTSS190ft Technical feasibility Not applicable require^ imporlatian of Machmery locally avallable Machtnery locally all machinery available Use of expattiate operators, e management P L~v~s~~~~~cosLs None USS5-10 million $SOW/unlt S5,WOlunit Technical plant required to None I unjt operating at 5 tonne$ 10 units operating at It would require 4-5 "nib meet sfarch market demand per day would produce 3 Vweek or 20 at producing I t pcr day 1,500 f in 300 drys. Eiccss 1.5 t per week would to supply 1,000 I to starch demand could be supply 1,504 t channelled lo other products or exponcd Sustainability Not applicable Depends on security and Subject to market penetration Subject to market penetration financial management and consumer reliability and consumer reliability can coexist wlfh larger opcraton Can cocxist with larger

For cornpanson of these options theic are a number of &3rumphonr. I. Market sze for UMS = 1,500 f, patenfzai value of this market at S60Olr = 69W.000. 2. Markct size for liquid glucose or HFS unknown but factory target was 4 Vday; at 1,500 Vyear market value $750,000 3. Market sire fur dextnn unknown but factory target was I Vday; at 500 1, value of thts market @ $500,OW. Table 16 contd. Comparison of the four identified market options.

Marketing Factory starch and Village-level srarchlflour Village-level flour ~SPCCB Impartation subproduct prwersine. omcearine. ~rnce~~ine

Management requ~rement None Expatriate management Local processon need Local processors muy need ladvisors assistance in marketing assistance in marketing Availability of raw materials na Farm supplies subject to Good Good production eficiency Require an outgrowen' scheme Capacity to supply to Generally good but may encounter Cod Questionable-unknown, Questionabl-nknown, clients on a regular basis delays subject to bureaucracy multiple sources of supply multiple sources of and problems with bansit will be required supply will be required Posrlbility ofreplacing n.a Prospects for offsetting starch Reasonable prospects for High imported goods imports good if factory can offsetting imported starch if compete with Kenya CPC and quality is good and price other international suppliers competitive. Benefits revenue None Potential revenues Potential revenues Potenrial revenues Smhmarket value US$900,000 Dependent upon market Natxonsl flour market value size for high quality e $80&100 million tlaur compared with baditional processed prducts Benefits employment na Factory employees from IS1 30 workers per unit = 300 30 worken per unit = 150 report 31 management 22 people people technical staff 131 labor 100 farm employees X-outgrowers Internal rate ofrctum na 40% over 10 years = IDU 38% according to preliminary 23-30% (Ferris et el. 30% over 5 years = IS1 data analysis 1998) Potentla1 problems Capital tied to imported Insecurity, unable to compete Technology failure Technology failure gods, loss of foreign with external market, irregulai Management failure Management failuic exchange, need to pay at power, inconsistent supply of Lack of marketing skills Lack of marketing skills hard currency costs raw material at low price and Inability to sustain supply lnabiliry to sustzln supply throughout the year, lack af Uncornpstitive price aualih. water Poor oualim Medium-scale industrial starch production Redeveloping Ugandan industrial starch capacity has been on the Government agenda for more than 15 years, but the project has failed to find strong private-sector support. According to this survey, the plans to develop a factory with a capacity of 5-10 t of starchlday would probably lead to an oversupply of the UMS market in Uganda. Therefore, as suggested by the IDU (1991), such a factory would need to process a range of starch products that are used by the local industries, such as MS, liquid glucose, HFS, and dextrin. Setting up a factory to produce only starch may be feasible at $2-3 million, but expanding the product range to include MS, glucose, and HFS, will substantially increase investment costs. In order to justify these costs, additional market surveys would be required to provide more detailed information on the current and expected market value for UMS, HFS, and dextrin in Uganda. Studying starch markets in Western Kenya also needs additional review, as this could fall into the catchment area of Ugandan production, but only if prices are competitive with Kenyan suppliers. According to the IS1 report (1995), establishing a medium-scale starch processing factory with a full product range would require an investment of approximately $8-9 million and to operate successfully, a number of technical factors needs to be in place. These include access to constant power via the national grid and back-up generators, access to clean water, and a system to purify waste water. For the process to operate efficiently. the factory would require a supply of 30-50 t of raw materials each day, for 300 days per year. Operations will require skilled staff, security and transportation. Whilst low cost raw materials are available in the Lira-Apac region and Lira was the site of the former starch factory, it is questionable whether it would be prudent to locate the factory in this region. Security in Lira district is not yet assured, supplies of power and water are erralic. distances to potential markets in Tororo, Jinja, Kampala, and Western Kenya are considerable, and transportation is expensive. Despite these problems with redeveloping factory-level processing, the Government of Uganda has commissioned three studies on the prospects for rebuilding the Lira starch factory. The Government has also made provision for counterpart funds towards investment plans. The return of the Asian community has regenerated interest in several primary business sectbrs and new investors have rehabilitateh three cotton ginneries in Uganda. The recent purchase of the Lira factory site by Ugandan investors further supports the view that there is serious interest in this venture. Given these developments, an update on the local conditions and feasibility studies concerning the factory may provide new insights into the potential for medium-scale starch processing, and may provide a better analysis in terms of locating the factory, investment options, and potential for financial support. Although thcre has been some growth in the cotton sector, and an increase in the ginning capacity, most processing is for lint production which does not require starch. The spinning factories, i.e.. those that use starch, are mainly'in Kenya, Tanzania, or overseas. In addition to the shift in location of the industly, the demand for textiles in the region has suffered due to the widespread importation of cheap, secondhand clothes. There have been some attempts to introduce legislation to increase taxation on imported clothes as a means to make local textiles more competitive. However, as the secondhand clothes sector provides up to 20-30% of transient employment in Uganda, it will be difficult to implement such legislation. Unlike former times, a factory seeking to supply the domestic market will need to supply more than UMS, as the cotton-textile sector is yet to show strong growth. This survey has shown that there is a small but expanding nonfood market for starch. The Crown Bottling Co. is currently building two soft drinks plants in Kampala and Mbarara, to supply Uganda, Rwanda, and D.R. Congo. The factory currently produces 28,000 crateslday of soft drinks but this capacity will increase to 58,000 in 2 years. Although the growth in soft drinks manufacturing could provide a lucrative market for supplies of high fructose syrup (HFS), the company has indicated that their plant is designed to use refined cane sugar and they would have to make considerable modifications to accommodate the use of HFS. In the circumstances, they considered it unlikely that the shift from sugar to HFS would be made, despite the cost saving they would achieve. Should this situation change, this potential market may prove to be a significant factor in location of a starch factory. Unlike in Kenya, the brewing factories based in Jinja and Kampala do not use brewers' starch, but again they may switch to greater starch utilization if a quality, low-cost starch were available. The future of industrial starch processing in Uganda, therefore, remains unclear. The market survey does not indicate a large, rapidly expanding domestic market that can be easily captured through local production. Energy costs are relatively high in Uganda and the condition of the roads makes transportation expensive. The location of a starch factory in Uganda is complicated by historical links, and production faces strong competition 6om Kenya, South Africa, and other overseas markets. Due to the fall in value of the Thai currency against the US dollar, cassava starch is particularly low cost and it is unclear when the Thai currency will return to 1997 levels. The low cassava starch prices may also lead to reductions in the price of maize starch, which would increase the competitive edge of imported products. Given these factors, the evidence suggests that this may not be the most appropriate time to invest in local industrial production of starch.

Small-scale starch processing Small-scale starch processing is a commercial reality in Latin America and Asia where root crops are processed at the village level into starch and starch products such as noodles, alcohol, maltose, and medicines (Plucknett et al. 1997). Developing the small-scale sector is attractive for a number of reasons, including low costs in investment, labor, and production, and flexibility in location. It is also attractive in developing economies as it provides a means to stimulate the rural sector and employ rural labor. There are seveial examples in Africa and other developing economies where small- scale rural agro-enterprises compete effectively and coexist with larger scale industrial developments. These small-scale operators produce up to 1 t of flour or 0.5 t of starch, generally use basic equipment, and are labor intensive. Taking advantage of low labor costs allows for lower investment costs for each processing center and means that capital risks are more widely spread. As shown in Vietnam, the production costs: investment ratio is lower for small-scale operators than for larger manufacturers, and this provides the competitive advantage (Goletti et al. 1998). In Uganda, there are already traditional methods for processing cassava and this type of activity can be improved relatively easily with the introduction of simple equipment that can increase processing efficiency, output, and product quality. Although small-scale processing technologies for root crops in Africa have tended to focus on flour and ~ariproduction, the system can be altered to produce starch with minor adaptations in the process. Water requirements can be substantially reduced if the process uses water tanks. To provide farnrers or processors with a range of market options, technologies should provide flexibility in terms of end products, i.e., one system to produce cassava chips, flour, and starch. This would mean that farmers will not be bound to the vagaries of one market and can test market opportunities according to demand and their ability to sell products. In addition to the supply of basic goods such as chips, (in this case, cut chips froir improved chippers), flour, and starch, cassava processing can be further diversified at the small scale to process products such as maltose, alcohol, and crude adhesives and dextrins. As with the larger scale operators, the production of a range of value-added products creates new options for income generation and helps to reduce risk. The information in Table 16 provides a comparison of the four identified market options. Table 17 provides an overview of the advantages and disadvantages of small- versus medium-scale processinz. Essentially, dealing in small-scale processing is a low costilower risk investment. cornpared with establishing a factory but has more problems with regard to quality and reguhr supplies. Small-scale processing of high quality cassava flour as a substitute for starch. This survey found that in the nonfood sector, industrial processors were substituting cassava flour for starch. In most cases, the processors were initially reluctant to discuss this aspect and it is probable that the level of substitution is underrepresented in the results from this work. According to B. Munaganizi (Pcrs. comm), almost all textile factories in the former Zaire replace starch with cassava flour. Prospects to supply the nonfood market wilh higher quality flour, using improved but small-scale techniques, are therefore higli, and this market option has several advantages. First, the market already exists and is likely to increase with industrial expansion and secondly, the nonfood industrialists are interested in a cassava flour that is of higher quality than traditionally processed flours. To supply such markets, small-scale processing is ideally suited as it requires low investment, uses rural labor, and technologies for the production of high quality cassava flour are available in Uganda. All that is required is for farmers to be trained in the use of equipment and then the processing groups to be linked with the industrial processors.

Table 17. Commercial medium- to large-scale versus small-scale starch production in Uganda.

Mcdium-scalc starch ~iacessinu Advantages Disad\,antagcs High and eflicient rates of output High initial investment for buildings, equipment, and watci and power supplies Consistent supply of high quality Factory needs a constant high volume products to markets supply of good quality, fresh cassma - IJse of modcrn technologies to produce - Product output needs to be competitive higher value secondary starch products with changes in the global market such as llFS and dextrins . Lo\\ product output costs due to economies May require expatriate management of scale and technical experience . Potential for supply to cnd-users in Uganda Factory needs to run an eff~icirntfarm and to a limited estcnt, western Kenya to ensure supply of raw material Increased local demand for rau materials Constant supply of power will be and generators to cnsurc constant processing needed . Use oSoutgro\\ers to supply cassava IIigh quality water supply is required at high volume . General ds\elopment ol'the region Ekctiie \baste hater treatment capacity . Provides rmpIoymi.nt opportunities . Factory will hcc strong competition from Kcnya CPC and \\ith international markets Factory will need access to spae parts and also market information. probably requiring a satellite link? Location of rdct~ry.if at i.ir& means high transport costs to conumcrs in Jinja, Mbale. Tororo. Kampala, and Mbarara

Small-scale starch processing - IJsc of local resources. in tcrms of Small-scale uiliage-level producers craps and lahur S~>rcc otien supply law quality products . Law inilial invcstmcnt Considerable training is required for developing the new lahur force Minor adaptat~onscan he made to tlour Questionable ability to supply on a tcchnologics to j;lcilitiltc starch proc~ssing regular basis - Ability to produce a rangc of products - Crcdit schcmcs nccded to facilitate purchasc of equipment and enterprise dcvclopmcnt lncrcasc in Farmers' incolmc . Poor coordination bchvccn the suppliers . Opportunity to intcgrillc \roali-scale . I.ack ofacccss to market information Finncrs with largcr industry and iocrrusc utiliratiun <,l'l,,cal crops VII

Strategies and technologies for small-scale market intervention

The technical details and prospects for medium-scale market development are clearly outlined in two reports (UNIDO 1991; IS1 1995). Therefore, this section of the report will focus on technologies required for small-scale processing and the possibilities for farmers and entrepreneurs to make the shift towards value-added cassava processing for three products: chips, flour, and starch. In Uganda, farmers are already processing cassava flour using traditional methods. Results from a nathnal survey revealed that in the major cassava growing areas up to 70% of cassava is processed into chips, flour, local beer, and gin (waragi) (Bukenya 1998). In the national baseline survey it was found that the most commonly mentioned constraints to processing were poor drying conditions, lack of processing equipment to increase the volume of processing, and high costs of labor. These constraints suggest there are opportunities for the adoption of techniques that offer increased processing efficiencies, reduce labor costs, and enable farmers to get access to higher value markets.

From traditional to high quality flour processing

Traditional cassava processing. In Uganda, there are two types of cassava, locally referred to as "sweet" and "bitter." Sweet cassava is generally consumed as a raw snack or boiled as a vegetable. Bitter cassava is usually processed, as this type of cassava is potentially toxic. It contains substances capable of producing hydrogen cyanide if the roots are consumed in the unprocessed fonn. In the drier northeast and northwest parts of the country, there is a greater percentage of bitter cassava that is traditionally fermented before consumption or grated and dried to make flour. Throughout the world, both types of cassava are common; the advantage of cassava toxicity is that people do not steal bitter cassava as a casual snack and the wild animals that eat sweet varieties do not harvest the crop. The bitter aspect, therefore, provides a protective mechanism against random harvesting and fields can be cultivated with confidence at considerable distance from the homestead. Plate 1. Heap fermentation. Source: National Resources Institute. UK

In Uganda, bitter cassava is traditionally processed to a safe, nontoxic product, using two methods: heap fermentation and wet fermentation. Heap fermentation is most common in areas with limited water supply. This process involves peeling and heaping roots into a pile that is covered with dry leaves, grass, or sacks. Over a period of 7-10 days, molds grow on the roots and facilitate the fermentation/detoxification process (Plate 1). After fermentation, roots are uncovered and the suiface molds are scraped away with a knife. The cleaned roots are then pounded, using a mortar, into a coarse pulp that is spread on mats to sun dry. The dried product is sold as "local chips," a mixture of small granules and large coarse pieces up to 2-3 cm in diameter. Wet fermentatioddetoxification involves soaking peeled cassava roots in water for 3-5 days in a river, pond, or container (Plate 2). When the roots have softened sufficiently, they are removed from the water and similarly pounded into a pulp that is sun dried. Dry cassava chips, the product of both processes, have an average shelf life of one month. However, if stored in good conditions, this period can be extended up to 3 months. For best quality flour, the chips are taken to a local hammer mill for milling into the fme flour that is most desirable. Cassava chips or flour are used by the household or sold. Consumers rehydrate the flour in boiling water to produce a stiff , locally known as posho or . Using these traditional methods, a family requires approximately one week to process 10-30 kg of chips. In addition to the drudgery of traditional processing, the output is low and quality is often poor in terms of color, odor, and contamination with earth. Costs of this method of processing are difficult to establish as labor costs are generally Plate 2. Soaking cassava, wet fermentation. Source: National Resources Institute, UK. not considered in the total, the assumption being that food processing is part of women's daily work. If this task were charged at an average cost of 300 Ushhour, then the processing costs would be relatively high as the process is labor intensive and time consuming. Drying is also dependent upon prevailing weather and this affects both quality and labor costs.

Traditional sweetpotato processing. Sweetpotato contain no toxic substances and roots are simply sliced and sun dried. Processing of sweetpotato in Uganda is restricted to the drier, more northern parts of the country, particularly Lira, Apac, Katakwi, Kitguma, and Gulu districts. Typically, sweetpotato are not washed or peeled. The tubers are brushed to remove the earth and then sliced longitudinally into 5-10 mm sections before being sun dried on rocks or the ground. The dried sweetpotato chips are rehydrated when added to a to bulk the food. The quality of the end product is generally poor, as no attempt is made to prevent or reduce oxidation during drying. Hence sweetpotato chips are often brown and the flour is grey. Processing is generally a household activity although recent market surveys have found that some sweetpotato is being processed into flour at commercial milling centers. Milline of sweetpotato chips has been observed only during peak production periods when the markets are oversupplied with fresh tubers. Farmers indicated they do not sell the sweetpotato flour but take it to their houses to mix with cassava flour (Ferris et al. 1998). Sweetpotato flour is not yet a commercially traded commodity in Uganda. Improved methods for processing cassava and sweetpotato flour Although traditional cassava processing is simple and effective in terms of producing safe and tradable goods, the flour is generally of low quality and there are few alternative market opportunities for this prodoct. Prices of the chips and flour are dependent upon seasonal yields and ceiling prices are generally limited by the price of maize flour, which is considered a product of higher quality. To test the potential for improved processing of root crops IITA, in collahoration with the Postharvest Program of the National Agricultural Organization of Uganda (NARO), has developed simple, small- scale cassava processing equipment (Plates 3-9). Chipping equipment can produce up to 1,000 kg of chipstday and during the dry season it takes 2-3 days to sun dry the chips. Grating equipment can produce up to 500 kg of fine, white, odorless cassava flourlday. The processing techniques, therefore, offer farmers the prospects of premium prices at the local marketplace and also access to secondary processing markets. This potential to engage in more vertical integration, from farmer to primar), and secondary processors, will lead to increased farm-gate prices, and the ability to diversify the product range is a critical factor in expanding the market sales points for a commodity and therefore in stimulating demand. A sample cost-benefit analysis of the production of processing chips and flour using the motorized proceszing techniques is given in Annex 4. The internal rates of return for these methods are shown in Table 18, and the cost-benefit is described in more detail later in this chapter.

Stages in processing high quality flour from cassava 1. Roots manually harvested and peeled. 2. Peeled roots are grated, using a power grater (Plate 3). 3. The grated cassava paste is dewatered using a press (Plate 4). 4. The drained mash is removed from the gunny bags and regrated. The regrated cassava flour is then spread out to dry (Plate 5). To avoid contamination by dust, the cassava flour can be dried on plastic sheets, concrete beds, or on raised racks. 5. Manual chipping equipment was also developed for cassava processing (Plate 6). Chipping can be used to accelerate flour processing only for roots with relatively low HCN content.

Table 18. Relation between method of processing and profitability. Method of processing Product Internal rate of return (95) Grating Flour 32 Chipping Flour 68 Vietnamese rasper Starch 36 Rasper and grater Starch and flour 33 Low acreage Flour 27 6. Power chipping equipment was developed for cassava processing (Plate 7). 7. Dried mash or chips are then milled using a hammer mill, bagged, and sold into the markets.

Manual processing One of the obvious disadvantages of power processing is the cost of the equipment for resource-poor farmers who have great difficulties in getting access to credit. The manual chipper was designed to offer a lower cost processing alternative and this equipment can be used for cassava and sweetpotato processing. The disc slicerlchipper has an output of approx~mately100 kghour, when used as a chipper and up to 150 kghour when used for slicing. The equipment costs $60/unit and $10 for each of the cutting plates. The slices or ch~psare dried on plastic sheets or raised platforms to avoid contamination with dust, and the slices are either used directly or can be milled into flour. The reason why manual processing has not been analyzed economically is that demand for this technology has been low.

Evaluating small-scale processing technologies

Starch processing technology. The process of wet starch extraction from cassava requires that roots are ground into a fine paste which can be sieved through a muslin cloth. The types of equipment that had previously been introduced into Uganda from Nigeria were to support cassava flour processing, using a gari type processor. The rasping head for the gar; processor is a punched metal sheet which produces a coarse textured paste that cannot be used efficiently for starch extraction. The granule size of the mash is too coarse to separate starch from the fibers through a muslin cloth. See Plate 8 for the yuri rasping head. Therefore, a visit was organized to observe and transfer Vietnamese starch processing technology. The Vietnamese technology was obtained through a study tour organized by the Vietnamese Root Crops Program and the National Postharvest Program of the Vietnamese Agricultural Sciences Institute, with the assistance of CIP and IFPRI. Simple, small-scale starch technology is common throughout the Red River Delta region of Vietnam where cassava starch processing is a widespread rural agro-enterprise, particularly for farmers living in the more remote regions (Golletti 1998). The Vietnamese grater has an output of 200400 kglhr producing 1-2 t of starch1 week. The technology is similar to that of the Nigerian gar; machine except for the rasping head. This is made from fine pieces of steel wire which are hammered in rows into a wooden cylinder (Plate 9). These wires provide the fine mash required for starch extraction. The cost of the starch machine was approximately $800 (1998 prices), including the 3.5 Hp engine at $500-550. More,recent links with suppliers from Dubai have reduced the engine's cost to $200-250. The equipment used for starch processing includes muslin cloths, sedimentation tanks, and stirrers. Plate 3. Bitter cassava is peeled and grated into a fine mash using a power grater.

Plate 4. Grated mash is dewatered using a press.

55 Plate 5. Sun drying dewatered mash or chips. The dried product is then milled.

Plate 6. Sweet cassava is chipped using a manual or power chipper. Plate 7. Power chipper.

Plate 8. Garicoarse granule rasping head. Plate 9. Starch fine wire rasping head.

All of these pieces of equipment, o3served in Vietnam, were transferred and fabricated at the IlTA starch processing center This test facility enabled the research team to make starch, learn the process of starch extraction, and fmd ways to make it more suitable for farmers. It also provided the first place to test the economic viability of the sqstem.

Cost-benefit analysis of the processing technologies The starc11 survey revealed there were market opportunities for small-scale processing of cassava into starch and high quality flour. For both processes, technology problems were overcome with the introduction of machinery from Nigeria and Vietnam. However, the question remained whether these packages were economically viable. To test this aspect of the research, a series of ex-ante cost-benefit analyses was conducted to measure the profitability of flour and starch processing enterprises, using data from on-station and on- farm processing units. The method of cost-benefit analysis used to evaluate the performance of the starch processing centers was that developed by Wheatley and Ostertag (1 995). A summary of the cost-benefit analysis for flour and starch production at Katakwi processing site with internal rates of return is shown in Table 18. The economic analysis showed that chipping was the most cost effective method of producing cassava flour. The research team did not expect this result, but the higher profitability of the chipping method was related to lower handling costs and a more rapid turnout than from the grating systems. Chipping,.however, has one drawback: it is recommended only with varieties that have a low-to-medium level of cassava toxicity (CNp) as it does not reduce cyanide levels as much as grating. (See later in this chapter.) For more details of the cost-benefit analyses, see Annex 4. The Internal Rate of Return (IRR) for flour production was 32% and the same analysis provided an IRR of 36% for starch processing. Part of the reason for the higher profitability for starch processing was related to sales of a higher value product, even when the extraction rate was relatively low. The information to date has found that at an extraction rate of only 10-20% starch, the group was able to produce UMS at a cost of approximately $200&250/t, with a sales delivery price of $350-500lt. It is envisaged that a farmers' group would process and sell both starch and flour, which had a slightly lower return. The reason for combining the two processes was because the level of starch extraction is relatively low, and the waste prodllct &om starch could be incorporated into the flour. Therefore, losses would be negligible. These IRR fiaures of between 32 and 68% are relatively healthy values, given an inflation rate of 5% and a prime bank rate of 25% interest. From these data, it is clearly more profitable to invest in this type of processins over a 5-year period than merely investing the funds in th'e bank. In addition to the profit, there are also a number of social benefits including provision of employment, use of land, and sales of a high quality processed product.

Sensitivity analysis of cost-benefit Although the IRR was considered relatively good for flour production, it is conceded that such analyses are highly dependent upon the assumptions made. Therefore, it is useful to review thc sensitivity of the assumptions for the IRR value (Annex 5). As the IRR falls below 25%, the model assumes that it may be better to invest the funds in an alternative venture and this therefore raises the option of opportunity costs. The operator should assess the changes in the IRR based on the assumption that analysis of these parameters can allow for better performance by making changes in the main cost variables or factors. For example, if the "capacity utilization" of the operation falls below 25%, what changes can be made to other factors, such as labor costs, to maintain the desired return on investment? The sensitivity analysis of flour production indicates the merit in seeking premium prices for the product and the dangers of producing a lower quality product, as the IRR is only 6% when the sales price falls from 300 to 250 Ushlkg. If an analyst were to apply this type of information on a national view, the best locations could be decided, based on spatial price maps using data from the national market information services. Flour recovery, a measure of the percentage flour from the roots, is another key factor in analyzing the efficiency of the operation. For best results, as much of the roots should be transformed into flour, the sensitivity analysis showed that only a 5% loss in extraction may be the difference between healthy profits and losses. As with all agro-enterprises, labor costs are a vital factor and should be maintained at a low level to enable long-term profits. According to the latest UNDP reports, the national average Ugandan wage is between 0.8 and $I/day; this is equivalent to Ush 1,200-1,500. For an 8-hour day, a laborer should therefore expect a range of 100- 175 Ushihour. It is unfortunate that in many cases, agro-enterprise projects are run as "projects" rather than business ventures. Labor is paid often at an unrealistically high level that basically makes feasible projects unviable. The analysis of production area revealed that as this falls below 20acres, profitability falls dramatically. This was a surprising result that indicates small groups may he less likely to develop profitable enterprises if they do not plant out relatively large areas of raw material quickly, i.e., within 2 years. This finding runs counter to the approach of supporting the poorest and smallest farming groups. It rather emphasizes the need to select groups that either have the potential for rapid expansion into higher volume processing or have social structures in place, such as collective marketing groups, which can exploit larger areas of cassava. The cost-benefit exercise was therefore important not only in showing the most profitable means of processing but also in providing a means to ascertain the minimum levels at which agro-enterprises can operate, relative to local opportunity costs. Perhaps it is also realistic to comment on the net present value that was based on an interest rate of 25%. This level is based on prime bank interest rates in Uganda. Although higher rates of return are available at hanks, the vast majority of farmers are not in a position to gain from such opportunities for their capital. It may he more realistic to determine real alternatives of opportunity costs which may be lower and these may be from 5 to 15% if such capital opportunities exist and if people have funds to invest. The point is that low rates of return may be acceptable in the mral farming system. In that case, processing centers for a smaller area may be the best financial options for a given locality.

The use of chipping and medium cyanide varieties of cassava In 1996i7, there was a spate of reported poisonings in Uganda that were attributed to cassava-based cyanide toxicity. This led to a moratorium on the multiplication of the rapidly spreading, newly released variety TMS 30572 that was assumed to have caused the outbreak. To investigate this matter, llTA and NARO set up a series of experiments to evaluate changes with age in the CNp of TMS 30573 and other commonly grown cassava genotypes. According to farmers in the main cassava growing region, TMS 30572 was considered to be bitter and therefore toxic until it was mature at 12 months after planting. At 12 months it was claimed that the roots were then safe to eat even as a boil-and-eat product. To test this theory, an age experiment was established to record changes in CNp of a range of cassava varieties with time after planting (Table 19). The FAO-recommended safety limit for cassava and cassava products is approximately 10 mg CN eqikg dw. However, this level is considered by many researchers to be too conservative and for the breeding community a value of approximately 100 mg CN eqlkg dw is used to differentiate between low and medium CNp varieties. i.e., those that can be consumed without processing and those that are recommended for processing. Table 19. The effect of crop age on root cyanogen levels at Serere station (mg CNkg DM). Months after planting Variety 3 6 9 12 15 18 2 1 24 Myghera 869 389 267 91 60 105 5 1 29 PDB 1,084 463 360 263 144 296 138 186 Tongolo 1,856 400 384 184 115 191 79 89 Nase l 185 136 158 58 54 54 32 24 Nase 2 734 257 85 7 1 53 90 24 30 SS4 395 190 165 98 47 100 46 35 cv 44% MAP Variety MAP x Variety rep 54 63 9 df 311 311 311 sed 22 20 53 Isd 43 40 104

MAP = months after planting cv = coefficient of variation rep = replicate df = degrees of freedom sed = standard error of difference Isd = least significant difference CN = cyanide

The data in Table 19 shows that in the first 69months, all varieties except for Nase 1 and Nase 2 were relatively high in CNp. However, after 12 months, only PDB and Tongolo were in the medium-to-high risk range. These data fully support the farmers' view that TMS 30572 is safe to eat after being grown for 12 months. Implications of this finding are that all the varieties were potentially toxic in the first 3 months after planting, but that levels for all varieties except PDB and Tongolo were in the safe range after 12 months. In terms of processing safety, this finding supports the shift from grating to ch~ppingas the most efficient means of processing cassava flour from varieties such as TMS 30572 (Myghera) in Uganda. It was the toxicity problem which initially led the processing research focusing on the grating method, but the financial and food safety data suggest that chipping is more attractive. VIII

Conclusions

Major findings from the survey Uganda had an industrial starch processing capacity until 1985, but this capacity and much of the associated market were lost during the period of civil unrest. In the past 10 years, there has been stable development and entrepreneurs are now investing in a broad range of industries including food and nonfood processing. As a result, there is a small but growing demand for starch within the pharmaceutical, food, brewing, textile, wood processing, and paper industries. ' At present, all domestic markets are supplied from imported maize starch. In 199819, the factory-gate cost was about $500-650lt c.i.f. Kampala. The information from the market survey suggests an approximate annual domestic consumption of starch (1,MX)-1,500 I), liquid glucose (1,W1,500 t), and dextrin (3W500 1). These markets have a combined value of $2-3 millionlyear. Import prices for starch products were in the range of $40&5@3 t in 1998, but due to changes in the value of the Asian currencies, starch prices bad fallen in 1999 to $25&350lt f.o.b., making cassava starch more competitive with cornstarch which was selling at $35W50lt. The international starch market is highly competitive. It is unclear whether Uganda has sufficient market volume or comparative advantages in terms of financial investors, infrastructure, security, and marketing advantages to support factory-level production. Small-scale starch processing is technically feasible and an economic analysis of processing flour and starch indicates rates of return from 32 to 68%. Further work is required to determine whether small-scale industries can be made into a profitable long-term agro-enterprise activity. Due to the high cost of imported starch, many processors are replacing starch with low-cost flours, and this offers a market opportunity for processors to supply industries with higher quality flour to improve on their products and still retain low- costs. On a volume basis, the size of the starch replacement market is probably larger than the starch market and this suggests that the cassava flour market is an attractive option for research and small-scale agro-enterprise investment. Short- to rnedium-term options for market intervention For the short term, the most practical means of supplying the "starch-using factories in Uganda" appears to be as follows in priority order. 1. Continued importation of starch and starch products. Due to the devaluation ofAsian currencies, this option is becoming more fmancially attractive. 2. Development of small-scale processors to supply high quality flour to the nonfood starch replacement market. 3. Expanded supplies of high quality cassava flour as a substitute for wheaumaize flour in the food sector.

Longer term options for market intewention Continued starch importation is possible, but with assistance to processors in the form of improved market information so that processors can take advantage of lower cost products and perhaps lower quality starch lots. 1. Test marketing to industrialists of starch from pilot site processing units. 2. Support in terms of feasibility studies to entrepreneurs interested in developing processing plants for both medium- and small-scale processing.

Options for market intervention

Starch importation. This is an attractive option because of low prices, high quality, and the availability of a range of prod&& from low-grade s!arch to modified and derived products. Supply is year-round, and if problems with transportation systems can be overcome, problems with delivery time and high cost of transportation will diminish. It is estimated that current transportation costs are $100/t of starch delivered to Kampala from Mombasa by road, and $60-70 by rail. No capital investment is required for importation and manufacturers can meet their needs as required. There is increasing competition within the Kenya market which will drive down prices and the development of the new South African starch factory may stimulate more competitive local prices.

Developing a medium-scale starch factory. Developing a factory-scale processing plant similar to that of the Lira starch plant to supply 5-10 uday of UMS is one of the projects under investigation by the Government of Uganda. At 5 tlday, production would probably meet the needs of a large percentage of UMS usage in Uganda, approximately 1,500 ttyr. The capacity to produce in excess of 5 uday of UMS would require a venture into sales of other starch praducts such as liquid glucose, HFS, and dextrins. The product mix would be dependent on demand and this would require detailed marketing analysis of specific products. The factory option has the advantage of economies of scale in terms of production, but requires a high initial investment, constant power, a regular supply of raw material, highly skilled manpower for management and maintenance, and a good supply of clean water. The Government of Uganda has commissioned three feasibility studies for the rehabilitation of the industrial starch capacity and bas offered incentive loans, but as yet no entrepreneur has commissioned work. Although the benefits to an area such as Lira would be appreciable in terms of employment, revenue, and a significant increase in demand for cassava, the starch market in Uganda is relatively small. There is strong regional competition and the critical question concerns future growth of the manufacturing sector. Two large soft drinks factories will soon be opened in Uganda to supply the Great Lakes region. It is estimated that production will increase from 28,000 to 60,000 crates by 2001. Currently, the industry is using purified sugar as the sweetener, but the imminent growth in the sector offers the opportunity for considerable demand for HFS. Growth in the cotton sector, the traditional market for Ugandan starch. has been relatively slow in the past 5 years. Although there are more processors and buyers working in Uganda, due to problems with weather, roads, and insecurity, the cotton sector has had a number of poor years, producing only 20,000 bales in 1998. Uganda currently has only two textile weaving industries, both of which are using maize or cassava flour, and therefore prospects for starch are limited. Other growth areas may be in the food and nonfood sector, and as planned in the UNlDO report (1991) a broad market mix may offer greater security in processing.

Development of small-scale processing. There are several examples in other deve- loping countries of the growth of a viable and vibrant small-scale starch processing industly. Developing rural agro-processing in Uganda would improve the skills and incomes of rural farmers and by targeting specific markets long-term economic sustainability could be achieved. Developing this sector will require the adoption by farmers of new but relatively simple technologies. From rapid assessments conducted with farming groups in Uganda, it would appear that the prospects for small-scale processing are feasible. The economic evaluation is promising, particularly when farmers are able to process a range of products, such as cassava chips, flour, and starch. The most attractive option for the farmers in terms of producing these products is that although the small-scale process is ineff~cient, i.e., only 10-15% of the harvested roots are converted into starch, the waste is of relatively high quality and can be incorporated into the flour process. The problem with developing a small-scale industry is the capacity of the farming groups to produce a product of sufficiently high quality and provide a sustained supply. This sector will need to develop sufficient management and marketing skills to be able to meet the market requirements. IlTA has already established 20 processing sites across the country as part of a USAID-supported initiative to increase income from local crops. This type of initiative could be expanded with the support of NCOs and the Government whose policy does not generally focus on the needs of the small-scale agricultural producers, although most of the GDP comes from the agricultural sector. The current situation with cassava offers a good opportunity for Government agencies to work in close collaboration with the technical and financial NGOs to stimulate this potential rural industry. Substitution of cassava flour for starch. The substitution of cassava flour for starch is already being exploited by the textile industry. Development of this sector is mainly amibuted to the availability and low price of the root crop flour that serves the same purpose as starch. Cassava flour can also be used in other nonfood areas, particularly for dextrin production, and there are options for using high quality flour as a substitute for wheat and maize in the brewing and confectionery industries. According to Gensi et al. (2001), up to 70% of the confectionery manufacturers in Kampala have at some time used cassava flour in their processing, but all have ceased this practice because of the poor quality of cassava flour. Tests are currently underway to supply processors with high quality cassava flour for biscuit making. Initial results show that biscuit quality is good using cassava flour. Providing technical support to this sector may be the most rational fust stage in developing the supply of higher value products from the small- scale sector.

Recommendations and areas for future research

Production Test with farmers new varieties of cassava, which are not only disease resistant and high yielding but have a higher dry-matter content (DM) than local varieties. Current information from EARRNET indicates that some newly developed clones have a DM of 45%, whereas local varieties have a DM of 25-30%. Collect more information on types of sweetpotato used for starch extraction and the methods used in order to avoid enzymatic browning. Analyze production efficiency of cassava in terms of production per unit area with and without the use of agricultural inputs, such as fertilizer and best management practices, to determine competitiveness of production compared to other crops based on local market prices.

Marketing Make linkages with Ugandan starch producers to investigate their future needs in terms of market analysis and technical support. Test consignments of locally made starch from small-scale processors with industrial partners in Uganda. Test consignments of high quality flour with those industrial partners in Uganda using either flour as a substitute for starch or mixtures of starch and flour. Test use of flour in dextrin production for plywood, cardboard box, and label fixing. Determine the level of starch demand in Kenya and Tanzania, prices, and suppliers, to provide a regional perspective. Evaluate opportunities for improved quality flours in industrial processing. ' Assess the market for subproducts, particularly HFS, in view of the new soil drinks factories in Uganda. Technology development Modify the existing cassava processor to enable simple shifts between flour and starch processing. Evaluate prototype root peelinglcleaning machines to reduce the constraint of cassava peeling. Improve or reexamine technologies for drying flour and starch. Gather information on traditional and improved sweetpotato starch processing.

Product development Assess the quality of the starch required for various markets. Assess the type of starch or flour, frzsh or fermented, required by the textile industry. Evaluate the differences between flour and starch. Assess the potential for animal feeds from cassava in Uganda. Assess the quality of sweetpotato starch. ' Evaluate simple methods and modifications to reduce browning of sweetpotato starch during dlying. Assess the possibility of producing and selling other products which are processed in Latin America or southeast Asia, such as tapioca, noodles, and animal feed pellets.

Linkages and training National. Increase the flow of products and skills from Latin America and Asia to farmers' groups in Uganda and the East African region. Study groups from Uganda or East Africa should link with national programs in Brazil and Vietnam to gain firsthand experience of product range and technologies required. This study should seek to identify and prioritize products, then training sessions need to be devised to enable the national program staff to exchange ideas and products. Intercenter. Stronger collaboration between the centers offers the advantage of transferring skills among scientists and thereby to the national partners at lower cost. A good example of this is the need for training in marketing for researchers and also for the target community. This could be achieved in East Africa by linking the IITAi CIP group with the agro-enterprise project from CIAT. Similarly, policy analysis to advise Governments and policy-makers at the donor level could be achieved by strengthened collaboration between IITAICIP and the Marketing Division of IFPRI. Centers with other bilateral agencies. Currently there are limited opportunities for collaboration between IITAICIP and the bilateral agencies including GTZ, NRI, CIRAD, ACIAR, and FA0 and the leading NGOs in terms of postproduction research and development in East Africa. Greater coordination or awareness among these agencies could have a major influence on the market analysis, delivery of technologies, and therefore the impact of postproduction activities in the region which should be done within a well-defined, market-led approach. 'meula!A 01 l!s!n aql %u!z!ue%lou! %u!ls!sse 103 (a3) s~alad !ea PUP (1xd.a) alnlqsur L3![od pmd [euo!lelualuI aql jo !naloE) 3 01 0%os[e sveqL .sanb!uq3al Bu!ssamld dola alenlena 01 meula!A u!ql!m rno1 Lpnls e %u!%uerreu! svoya qaql 103 pue 'epue%n 01 sa!%o[ouq3al %u!ssamld qsrels asameula!~%u!lra~sueq u! a3uels!sse qaql 103 (ILH~)alnl!lsuI L%o[ouq~a~~sanreq~sod aq~ JO ue? 1q~.%uea SJN pue LnH %unqd~pq '(1s~~) alnl!lsuI sa>ua!Js [e~nqna!l%vtueu~a!~ aql u!q,!m mal%oq sdol3 1oox aql jo quLn0 3eqx uaLn%~ pue ua!q3 la 01 [njaler%are s~oqmeaqL 'VUI pup '(ma) tuamdola~aa puo!lelualuI JOJ ~uamwdaaaql '(aIVsn) ~uamdo[anaa leuo!leluamI loj L~ua%v sa14s pal!un aql pue '(1a3v) puo!leluaxuI iuamdo[anaa 103 an!leiado-o3 [mm,[n3@r~ aql ~OJJspun3 huama[ddns pue '(3xa) aqua3 qaleasax luamdola~aa[euo!~ewa~u~ aql JO yloomlaN qareasax uo!l3npoldlsod an!leloqe[lo3 [eqol~aql JO pund s~ue~~)[[ems aw ~OJJ8u!puy [eg!u! ql!m '(dm)maoq isanreqlsod leuo!leN epue%naql pue (a3) wua3 o~qod[vuo!$ewalu~ aql WIM uo!1e~oqe[[o3u! 'VUI Lq ino paw3 sem Lpn(pn1s s!q~ References

Bagalapolan, C. 1988. Cassava in food, feed, and industry. CRC Press, Boca Raton, FI. USA. Blanchard, J.M.V. 1995. Cassava starch. structure, properties and implications for contemporary processing. Pages 62%538 in The Cassava Network Proceedings of the second international scientific meeting, Bogor, Indonesia, 22-26 Aug 1994. Centro Internacional de Agricultura Tropical, Cali, Columbia. ClAT Working Document No. 150. Bukenya, C. 1998. Constraints to improved cassava processing in northeastern Uganda. MSc thesis, Makerere University. pp 120. FEWS (Famine Early Warning System). 1999. FEWS Uganda, monthy report, Apr 1999. Areport on food security and vulnerability in Uganda. Kampala, Uganda, pp 6. Ferris, R.S.B., GW. Otim-Nape, J Legg, and J. Whyte. 1997. CSARC technical report No. I- Cassava research 1995-96. East and Southern Africa Regional Centre for the Improvement of Cassava, Banana, and Plantain, Namulonge, Uganda. pp 109. Ferris, R.S.B., J. Legg, GW. Otim-Nape, and J. Whyte. 1998. Dissemination and utilization of mosaic resistant cassava. ACDI/USAID Technical Report 1, pp 46. Gensi, R.M., M. Bokanga, A. Nayiga, and R.S.B. Ferris. 2001. Investigating the potential for vertical integration of primary cassava flour producers with secondary confectionery processors in Uganda. Pages 694-699 in Root crops in the twenty-first century, edited by M.O. Akoroda and J.M. Ngeve. Proceedings of the seventh conference of the lntenational Society for Root and Tuber Crops-Africa Branch. Cotonou, Benin Republic, Oct 1998. pp 773. Goletti, F., K. Rich, C. Wheatley, andN. Kim Vu. 1998. Starch industry development as a strategy for agro-food based rural industrialization. IFPRI, Markets and Structural Studies Division: Parts I and 2. Washington, DC, USA. pp 156.

\vww.starch.dk IIlU (Industrial Ilevelopment Unit) 1987. Rehabilitation of Lira starch factory. Pages 1-5. Commonwealth Secretariat, London, UK. IDU. 1991. Commonwealth Fund for Technical Cooperation. Feasibility study for the rehabilitation or the Lira starch factory. Commonwealth Secretariat, London, UK. pp 126. IS1 (International Starch Institute) 1995. Production of cassava starch in Uganda: an opportunity study. Science Park Aarhus. Denmark. pp 26. Kolijn, S., R.M. Gensi, A. Muganga, R. Matovu, G Ntibarikure, S. Ecwinyu, and R.S.B. Ferris. 1998. Microenterprise development in Katakwi District: cassava processing with Matilong Farming Organization. Interim report for Department for International Development, UK. IITNESARC, Kampala, Uganda, pp 20. www.cgiar.or~foodnsfiag~enti~ase~matilong. Lynam, J. 1987. World and Asian markets for cassava products. Section 8 in The cassava economy of Asia: adapting to economic change, edited by J. Lynam. CIAT, Cali, Colombia. PP 49. Marler. A.D. and W.H. Timmins, 1992. Small-scale processing of sweetpotato in Sichuan Province, People's Republic of China. Tropical Science 32: 241-250. New Vision Newspaper Corporation. 1999. Daily edition 15 April. Kampala, Uganda. Opio Odongo, J.M.A. and GW. Otim-Nape. 1999 Cassava development in Uganda. A national strategy and action plan. DFID, Kampala. Uganda. pp 33. Ostenag, C.F. 1996. World production and marketing of starch: progress in research and development. Pages 105-123 in Proceedings of an international meeting held. in Cali, Columbia, edited by D. Dufow, GM. O'Brien, and R. Best. CIAT No. 105. Cali, Colombia. pp 123. Otim-Nape, GW., A. Bua, and J.M. Thresh. 1997a. Cassava mosaic virus disease in Uganda: the current pandemic and approaches to control. Natural Resources Institute of University of Greenwich, London, UK. pp 8. 0th-Nape, GW., A. Bua, J.M. Thresh, and M. Pattison. 1997b. Mastering mosaic, the fight for cassava production in Uganda. The Gatsby Charitable Foundation, 9 Red Lion Court, London EC4A 3 EB. UK. pp 15. Owori, C. 2001. Development of sweetpotato products in mal areas: case study of Lira district in Uganda. Pages 699-708 in Root crops in the twenty-first century, edited by M.O. Akoroda and I.M. Ngeve. Proceedings of the seventh conference of the Intenational Society for Rwt and Tuber Crops-Africa Branch. Cotonou, Benin Republic. Oct 1998. pp 773. Plucknett, D.L. T.P. Philips, and R.B. Kagbo. 1997. A global development strategy for cassava: transforming a traditional tropical root crop. www.globalcassavasuategy.net~pub1i~ root-crop.htm Scott, GJ., M. Rosegrant, and D. Ringler. 2000. Trends and projections, for root and tuber crops to the year 2020. Food, agriculture, and the environment. Discussion paper, IFPRI-CIP, Washngton, DC, USA. UNIW (United Nations lndustrial Development Organization) 1991. A study conducted by the lndustrial Development Unit of Uganda with the Commonwealth Fund for Technical Co- operation. Feasibility study for the rehabilitation of the Lira starch factory. Commonwealth Secretariat, London, UK. pp 126. Wheatley, C. and C. Ostertag. 1995. A financial model for the implementation and evaluation of small-scale agro-enterprises. Pages 361-383 in Prices, products, and people, edited by GI. Scott. Lynne Rienner Publishers Inc. USA. pp 495. Annex 1. Glossary of commonly used starch-related terms

Acid conversion Starch hydrolysis with acid as the catalyst. Amylopectin For most starches artylopectin is the major component-a branclied glucose polymer with typically 14glucosidic bonds for evely 12 glucose units. Amylopectin consists of several 100,000 glucose units. Amylose The minor constituent of starch is amylose-a linear glucose polymer with alpha 1-4 glucosidic bonds only. Carbohydrate Monosaccharide or natural organic substance giving monosaccharides by hydrolysis, e.g., starch, sugar, cellulose, glucose, fructose, maltose Conversion Synonym of conversion hydrolysis or hydrolysis. Crystallization In concentrated high DE syrups, glucose crystals are formed and precipitate. Dextrin Industrial dextrin is granular starch with molecules reorganized by roasting causing the granules to be cold water soluble. Depending on the degree of roasting, dextrins are grouped as White Dextrin, Yellow Dextrin. and British gum. Dextrose Synonym for glucose. Within the industry, dextrose is used to describe 100% pure glucose. Disaccharide Carbohydrate with two monosaccharides per molecule, e.g., sucrose, maltose. Sucrose is a disaccharide with one glucose and one fructose per molecule. Enzyme Three groups of enzyme catalysts are used in the glucose industly: (I) alpha-amylase for liquefaction, (2) amyloglucosidase for saccharifi- cation, and (3) isomerase for conversion of glucose to fructose. Fructose Alpha-D-fructose is an isomer of alpha-D-glucose. Standard fructose syrup contains as much as 42% fructose and enriched syrup as much as 55%. High concentration of fructose is achieved by chromatography. Processed fermented cassava food, roasted granules, in Nigeria. Gelatinization The process of cooking starch. Glucose Monosaccharide, C,H,,O, existing as a- and & glucose with an optical rotation of +I052 respectively +20. 3". The synonym dextrose refers to the positive direction of rotation (dcxtra = right). Glucose syrup A liquid starch hydrolysate of mono- di- and higher saccharides. lligh fructose syrup A liquid starch hydrolysate with a high content of fructose-typically 42, 55 or 90% fructose. Hydrolysis Breakdown of starch to glucosc and smaller polymers by cutting glucosidic bonds with simultaneous uptake of water, lndustrial hydrolysis is a two-step operation: liquefaction and saccharification. Enzyme rearranging glucose into fructose. The process reaches a feasible equilibrium with 42% fructose, 53% glucose, and 5% higher . Liquefaction Partial hydrolysis of cooked starch followed by a viscosity reduction. Depending on the catalyst, the DE of the liquefied starch is 15-25. Maltose A disaccharide of glucose &amylase is used for maltose-rich syrups Modification Modification is a process in which native starch is modified by physical and chemical means to suit various industrial applications, eg, esterification. Monosaccharide The smallest unit obtained by hydrolysis of , e.g, glucose, fructose. Glucose is the monosaccharide obtained by hydrolysis of starch. MS Modified starch. UMS Unmodified starch-native starch. Native starch Native starch designates starch in its natural unmodified form, no modification, eg, native starch from potato, cassava, maize, rice, wheat. Polysaccharidc Carbohydrate giving more than 6 monosaccharides by hydrolysis, e.g., amylopectin, amylose, cellulose. Retrogradation Starch crystallization. Linear chains of starch are able to form crystalline structures - crystallites -causing staling in bread and milky appearance or syneresis in starch gels. Saccharification Hydrolysis of starch into higher DE syrups after liquefaction. Sorbitol Hexitol - a sugar alcohol -obtained by hydrogenation of glucose. Sucrose Ordinay sugar from cane or beet is a disaccharide of glucose and fructose. Synonyms: saccharosc, sugar. Starch A polymer of glucose found as a reserve in most plants. Another glucose polymer found in plants is cellulose. Compared to cellulose, starch is made up of alpha glucosidic bonds, which cause helix-shaped molecules while cellulose builds with beta glucosidic bonds giving straight molecules and a fibrous structure. In plants, starch is organized in 1-140 pm granules.

Source: Based on I nternational Starch Institute website. See webnite for a more complete list. Annex 2. Questionnaire form used in market survey

Market survey on starchiflour utilization in Uganda District: Type of institution: Ownership (private/parastatal): Starting date of institution: Firm size (small, medium, or large): - Name of respondent: Position of respondent: 'Telephone number: Survey date:

1.0 Operations of the company/institution 1.1 Describe the products you produce: 1.

1.2 What has been your trend of production over the past three years? Quantity Consumers of produced per the product Trcnds in Year Product(s) daylwklmthlyr /country of production Reason produced (kdt) export (+I-) for trend 1997

1.3 Briefly describe your plans for the next two years (e.g., scale of production, products, markets)

2.0 Starch utilization 2.1 Do you use starch in the production of any of your products? Y 1 N - 2.2 If Y, could you please fill in the table below: Starch quality, Purpose of the Amount of Type and grade of starch characteristics starch in the starch used in used (Refer to the lists (e.g., color, texture, production of the production Product given below) taste, odor) the product process (kg) Tvne Grade

Types of starch Grades of starch 01 Maize (corn) 06 Food grade 02 Cassava 07 P:iarmaceut~calgrade 03 Wheat 09 Industrial grade 04 Sweetpotato 10 Other (specify) 05 Other (spec~fy) 2.3 What is the source of your starch? (Can tick more than one option). 1 Local 2 Imported 2.4 If local,please fill:

Amount used Name of company Type of Grade of Quality per wWmth1yr Cost per starch starch characteristics (kglt) kdt

2.5 If imported starch is used, please fill: Volume of Value of Other costs Country of origin 'i'ype of consignment consignment incurred starch (kelt) iUsh) (Ush)

Last one month or last month imported

Last 6 months

Last year (1997)

2.6 What is the minimum amount of starch you require on a weeklylmthlylannual basis? 2.7 If you prefer a specific type of starch, please explain reasons why (e.g., cost, quality, availabiiity etc.)

2.8 Do you think that there are any advantages or disadvantages in using local starch instead of imported starch in the manufacture of your products?

Local starch Imported starch Advantage Disadvantage Advantage Disadvantage

2.9 Would you be interested to use cassava starch in your product if it were available and of high quality?

2.10 Do you face any problems in the procurement of starch? Y I N

2.11 If yes, what are they? (rank in order of importance; I. most important etc.) Problem Rank

2.12 Could you suggest possible solutions to the above-named problems:

2.13 What would be your major concern with supplies ofstarch from a local manufacturer?

2.14 What percentage ofyour total product(s) costs do the starch costs cover? Overall product Starch costs in this Starch costsloverall Product costs product product costs I 2.15 Would using local supplies reduce your costs of production?

2.16 Have starch prices over the past 5 years affected your company in any way? If so, please, explain

3.0 Utilization of starch subproducts 3.1 Do you use ariy of the starch subproducts listed below? (Can tick more than one option) a. llextrin - b. Glucose -- c. Fructose - d. Glues e. Other (Please speci*) 3.2 If yes, please fill in: Amount Cost of Cost of Starch sub- Source of Used in Pumose of SSP SSP1 SSPloverall product SSP which of ;he used kg/ kg/tome product (ssp) [Co.lCity] product? SSP d/wk/rnth/yr (Ush) costs

3.3 Please list any problems you face in the procurement of the above-named starch subproducts Problem Possiblc solution

3.4 What would be your major concern if all the starch derivatives you require are locally available? Would you be willing to use them in your products? 4.0 Flour utilization

4.1 Do you use any of the following flours in your institution? (Can tick more than one option). a. Cassava - b. Maize - c. Sweetpotato - d. Wheat - e. Other (specify) 4.2 If Yes, fill table below: Amount used CosV Source Quality of Purpose of per day1wW kg Tv~eof flour (CihilCo.) the flour the flour monthbear (Ush)

4.3 Please give the price trend of the flours you have used over the past 2 years

4.4 Has this had any effect on your compauylinstitution?

4.5 What do you think of using cassava flour instead of the usual type you use in the manufacture of your product@)?

4.6 Do you have any questionslcomments? Annex 3. Factories/lnstitutions visited that do not use starch or any subproducts in the manufacture of their products

Institution 1. Africa Basic Foodsa 19. Gator's cafka 2. Banada Poultry kedsb 20. G.B.KC 3. Berger Paintsa 21. Hwan Sung Ltda 4. BMK industriesa 22. House of Foodsa 5. Boflo Bakerya 23. International Paintsa 6. BPC chemicals Ltda 24. Kasanga Bakerya 7. Bulemezi Farm Enterprises ~td~ 25. King Loaf Bakerya 8. Bulangiti Dairy ~arrn~ 26. Maganjo Grain Millersa 9. City Breado 27. Magric (U) Ltda 10. corpusa 28. Masters' Bakerya 11. Countly tasteC 29. Mengo Hospitala 12. Daily Bread Lta 30. New Bakecraft and Dairy Ltda 13. Dairy Corporationa 3 1. Ntake Bakerya

14. Desbro (U) Ltd - Importer of starcha 32. Nyange Bakery Ltda 15. East African Foodsa 33. Oscar industriesa 15. Elgon Feeds 34. Peacock Paintsa 16. EverfreshC 35. Professional Paintsa 17. Family LoaP 36. Sadolin Paintsa 18. Fidodido icecreama 37. Tuwereza Bakerya

Nontrading companies that were visited 1. Africa General Foods Ltda 2. Anifarm Commodities Ltda 3. Bame Agro Investments Ltda 4. Butambala Enterprisesa 5. Leather Tanning in Kawempea 6. Makindu Growersa 7. Ministry of Defence-textiles in Kawempea 8. Mukono Growersa 9. Quick-bite Industries Red Hot Chillies Co. (U) Ltda 10. Suntrade and Consulting (U) Ltda

Note: OKarnpala bMvlukono CMbarara Annex 4.Cost-benefit analysis of flour processing Evaluation of small-scale cassava flour processing in Katakwi district using power grater Project life: The economic life of the processing plant is assumed to be 5 years Production capacity: The plant will operate throughout the year Capacity utilization: Constant rate of 80% capacity utilization has been assumed Inflation rate: This has been put at 5% per anum and same for ail the life span of the project Residual value of assets: At close of the project, the plant will be worthless Financial profitability analysis A. Parameters of the cassava flour production process used in the model Annual acreage of cassava garden Y~eldof tubers per acre (t) Flour recovery rate per ton of fresh tubers Stullings per man-hour Pncc per kg of flour Capacity utilization rate Weight of hag of flour (kg) Annual plant capacity (1) (assuming 100% utilization capacity of the plant) Annual ~lant~roduction (t)

B. Estimated investment Maintenance Cost of 1. Equipment Cost coefficient maintenance Power graters (2) 2 1,800,000 0.05 90,000 Press incl. 4 grids and jack 6 1,284,000 0.05 64,200 Black drying sheet 187 178.000 0.05 8,900 Wheelbarrows 4 220,000 0.05 11,000 Drums 4 50,000 0.05 2,500 Spanners 8 16.000 0.05 800 Bags 15 7.500 0.05 375 Oil and fuel 10 10,000 0.05 500 Subtotal 3,565,500 178,275 2. Infrastructure Bricks for wall repair 100,000 0.05 5,000 Cement for fence and drying area repair 178,100 0.05 8,905 Timber 30,000 0.05 1.500 Labor for repairs (unskilled) 24,000 0.05 1.200 Labor for 3 masons for 2 days 73,500 0.05 3,675 Store painting 15,000 0.05 750 Borehole repair 15.000 0.05 750 Subtotal 435,600 21,780 Total investment 4,001,100 200,055 Fixed costs Costlacre CosUt of flour Plant maintenance 1,667 1,510 Subtotal 1,667 1.510

Variable costs

Item Costlacre CosUt of flour a. Cost of -erowine - of cassava 75.000 67,935 Land clearing and plowing 25,000 22,645 Planting labor and material 15,000 13,587 I st weeding 20,000 18,116 2nd weeding 15,000 13,587 Man-hourslacre Costiacre CosUt of flour b. Uprooting and transporting 200 30,000 27,174 Man-hourslacre Costlacre CosUt of flour

c. Processing costs 93,167 84,390 Transport (water, tubers, equipment) 60 10,000 9,058 Peeling tubers 200 33,333 30,193 Washing tubers 53 8,833 8,001 Grating tubers 35 5,833 5,284 Difiberinglscreening 80 13,333 12,077 Drying starch 55 9,167 8,303 Bagging and storage (starch) 30 5,000 4,529 Management and miscel. 25 4,167 3,774 Fuel cost 3,500 3,170 CosUbag Costlacre Costlt of flour d. Transport, milling, and marketing 5,550 61,272 55,500 Transport Katakwi-Kampala 3,000 33,120 30,000 Loading cost 600 6,624 6,000 Milling cost Soroti (1000lper bag) 1,000 11,040 10,000 Rebaging cost and cost of bags 700 7,728 7,000 Marketing and storage cost 250 2,760 2.500 Total variable costs 259,439 234,999 Total production costs 261,106 236,509

C. Sales price and margins Pricelt at Kampala 275,000 Net margin (%) 0.14 Net marginlt (Ush) 38,491 Gross margin (%) 0.15 Gross margin (Ush) 40,001 D. Cash flow matrix 1998 1999 2000 2001 2002 Inflation 0.05 0.05 0.05 0.05 0.05 Investment Equipment 3,565,500 Consuuction 435,600

Working capitala 3,113,264 155,663.20 163,446 171,619 Income: Sales Less: Variable costs 9,000,000 3 1,132,640 32,689,272 34,323,736 36,039,923 Cost of growing cassava 9,000,000 9,000,000 9,450,000 9,922,500 10,418,625 Uprooting and transporting 3,600,000 3,780,000 3,969,000 4,167,450 Processing 11.1 80,000 11,739,000 12,325,950 12,942,248 Transport, millmg, and marketing 7,352,640 7,720,272 8,106,286 8,511,600 Fixed costs 200,055 210,058 220,561 231,589 Total production cost 31,332,695 32,899,330 34,544,296 36,271,511 Net cash flow (13,001,100) 1,986,041 5,198,607 5,458,537 5,731,464

Working capital increared annually according to inflation E. Profitability parameters Internal Rate of Return 3276 Minimum acceptable IRR or opportunity cost of capital 25% Net Present Value using 25% discount rate 2,091,107

Reference Gininger (1982) ~W?Y OOE SLZ OSZ Resource and Crop Management Research Monographs

Economics of Root and Tuber Crops in Africa. P. Dorosh January 1988 Cropping Systems and Agroeconomic Performance of lmproved Cassava in a Humid Forest Ecosystem. F.I. Nweke, H.C. Ezumah, and D.S.C. Spencer June 1988 Indices for Measuring the Sustainability and Economic Viability of Farming Systems. S.K. Ehui and D.S.C. Spencer November 1990 Opportunities for Second Cropping in Southwestern Nigeria. H.J.W. Mutsaers February 1991 A Strategy for Inland Valley Agroecosystems Research in West and Central Africa. A-M.N. Izac, M.J. Swift, and W. Andriesse March 1991 Production Costs in the Yam-based Cropping Systems of Southeastern Nigeria. F.I. Nweke, B.O. Ugwu, C.L.A. Asadu, and P. Ay June 1991 Annual Report 1990: Highlights of Research Findings June 1991 Rice-Based Production in lnland Valleys of West Africa: Research Review and Recommendations. R.J. Carsky October 1991 Effect of Toposequence Position on Performance of Rice Varieties in Inland Valleys of West Africa. R.J. Carsky and T.M. Masajo October 1991 Socioeconomic Characterization of Environments and Technologies in Humid and Subhumid Regions of West and Central Africa. J. Smith February 1992 Elasticities of Demand for Major Food Items in a Root and Tuber-Based Food System: Emphasis on Yam and Cassava in Southeastern Nigeria. F.I. Nweke, E.C. Okorji. J.E. Njoku. and D.J. King February 1992 Annual Report 1991: Highlights of Research Findings August 1992 Ten Years of Farming System Research in the North Wesl Highlands of Cameroon. D. McHugh and J. Kikafunda-Twine September 1992 A Review of Research on Resource Management Systems of Cameroon's Forest Zonc: Foundations and New Horizons. D. Russell September 1992 Annual Report 1992: Highlights of Research Findings October 1993 Mapping and Characterizing Inland Valley Agroecosystems of West and Central Africa. P.S. Thenkabail and C. Nolte January 1995 Nematodes as Productiol~Constraints in Intensifying Cereal- Based Cropping Systems of the Northern Guinea Savanna G. Weber, P.S. Chindo. K.A. Elemo, and S. Oikeh April 1995 The Maize and Cassava Production System in Southwest Nigeria and the Effect of lmproved Technology. H.J.W. Mutsaers, A.A. Adekunle, P. Walker, and M.C. Palada September 1995 19. Slrigu hhermunthica in Cropping Systems of the Yorthern Guinea Savanna. G.K. Weber, K. Elemo. 4. Awad, S.T.O. Lagoke, and S. Oikeh December 1995 20. Weeds in Intensive Cereal-based Cropping, Systems of the Northern Guinea Savanna. G.K. Weher, K. Elemo, and S.T.O. Lagoke December 1995 21. Llacrocharacteriration of Agricultural Systems in West Africa: An Overview. V.M. Llfanyong. J. Smith, G.K. Weber, S.S. Jagtap, and B. Oyeuole January 1996 22. Macrocharacterization of Agricultural Systems in Central Afiica: An Overview. V.M. hlanyong. .I. Smith. G.K. Weber, S.S. Jagtap. and B. Oyewole February 1996 23. Adoption Potential of lley Cropping. K.21.Dvorak July 1996 23. Soil and [,and-Use Survey of the Korthern Section of thc Mbalmayo Forestry Reserve (Southern Cameroon). Ichienkoua July 1'196 25. Mucuna-llerbaceous Covcr f.egume with I'otential for Multiple Uses. R.J. Carsky, S.A. 'Tara\\ali, M. Recker, D. Chikoye, G. Tian. and N. Sanginga .lunc 1998 26. Benefits of Mulching in the Suhhuiiiid Savanna Zone: Research Needs and Technology Targeting. R.J. Carsky. Y. Hayashi, and G. Tian Novcmbcr 1998 27. An Analysis of Horticultural Productior and Varketing Systems in the Forest Margins Ecoregional Benchmark of Southern Cameroon. J. Gockowski and bl. Ndoun~hi: Ilrcernher 1999 28. Land-Use Characterizalion and Estimation of Carbon Stocks in the Alternatives to Slash-and-Burn Benchmark rea in Cameroon. C. Nolte, J. Kotto-Same, 4. Rloukam, P.S. Thenkabail, S.F. Weise, P.L. Woomer, and L. Zapfack .April 2001 29. Marketing Opportunities for Starch and High Quality Flour Production from Cassava and Sweetpotato in Uganda. R.S.B. Ferris, A. Muganga, R. Matovu, S. Kolijn, V. Hagenimana, and E. Karuri March 2002

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